Online retail in India is growing at a CAGR of 23 per cent, says Jefferies. It is currently around 25 per cent of the total organised retail market in the country and can potentially increase to around 37 per cent by 2030. Spends per online shoppers, which are estimated at Rs 12,800, are expected to increase to Rs 25,138 by 2030, with consumers shopping online for other segments, beyond electronics and apparel. There has been an increase in the online market share of the electronics segment, including mobile phones, largely due to heavy discounting and cash back online in electronics. New customers are expected to continue entering online grocery, even as categories such as personal care grow their online market share. In the long run convenience will outrun discounts as the key driver.
The gross merchandise value of online shopping is expected to grow at a CAGR of 50 to 60 per cent by 2020. The online market place in India is seeing lucrative opportunities coming from rural areas. With the increased penetration of smart phones and internet, these retailers expect a large base of first time online consumers to come from rural areas. Probably half of Indian internet users will be from rural areas by 2020.