‘Indian e-commerce industry to cross $100-bn mark by 2020’
Undeterred by the demand slowdown in the global market, Indian e-commerce industry is expected to cross $100-billion mark, registering annual growth rate of 35% over the next five years, a study has said. The study conducted by Associated Chamber of Commerce and Industry (ASSOCHAM)-Pricewaterhouse Coopers (PwC) has estimated $17 billion the current size of the industry. “Continuing on the strong growth momentum of 2015, the e-commerce industry is estimated to see a 72% increase in the average annual spending on online purchases per individual in 2016 from the current level of 65%,” the study said. At the same time, the slowdown has led to troubles for shopping malls and other physical outlets that are suffering 20-25% vacancy rates and 30% drop in rentals in the last one year. “It is true that the online shopping has shown handsome growth while the brick and mortar malls are witnessing slowdown. It looks that the growth in e-commerce looks impressive because of quite a low base and increasing penetration of internet,” said D S Rawat, Secretary General, ASSOCHAM. According to the study, malls in the US are facing 46% vacancy rates, while those in the UK are struggling with 32% vacant space. “Indian trend is in line with the declining number of foot falls in retail space in over 200 shopping malls across the US, UK and other countries,” it said. In India, sales in shopping malls have dipped by 25-30% and footfalls by 15-20% compared to the same period last year. The study also projected a significant rise in the number of online purchaser with improvement in broadband infrastructure and increase in internet devices. The number of online purchasers in India is estimated to be around 65 million in 2015, as against around 40 million in 2014, it said. On the other hand, 45% of malls in India are expected to be converted into non-retail space within next 15 years, with replacement by movie theatres, restaurants and discount retailers.
September 07, 2015 | 4:16pm IST.
to success.