The online consumer spending is increasing exponentially in India. According to the latest report, Indian online space will grow 2.5x by 2020 which will hit around $100 billion. This will bring growth in e-commerce, digital media, travel & hotel, and financial services. If this holds true, online shopping will change the way people shop.
Citing the sources, a report by Boston Consultancy Group in partnership with Google suggested that $100 billion digital consumer spending will be there by 2020. Presently, about $40 billion transactions are made online in India.
Online Shopping: Imminent Growth Possibilities
The report further expressed that the e-commerce sector could be the highest constituent of online spending surge. The products like consumer electronics, fashion and apparel, durables, grocery and food items are believed to be the biggest contributor to the growth. It is estimated to increase to $40-45 billion by 2020 which is currently at around $18 billion.
The digital payments in India are estimated to go around $20 billion for travel and hotel industry which presently accounts at $11 billion; the financial services are expected to go near $30 billion which presently accounts $12 billion; and digital media spending to reach a whopping $570 billion from $200 billion at present, as per the report.
The number of online users will increase nearly two times in next four years. This growth will be propelled by the availability of cheaper smartphones, affordable data and local language content in India.
The report further stated that the growth will be driven by new users from above 35 years (age) shoppers and non-tier 1 cities. The women shoppers will be increased 2.5 times of the current numbers and the older age shoppers will be 3 times more than the existing. The improvements in infrastructure will drive growth in the online shopping industry in India.
About 75-80 percent of internet users are said to be not involved in any online shopping. Though, the Indian users are getting aware of how to stay safe and save big while shopping online. The Indian users are price conscious and offerings of discounts will boost trails, build trust and comfort in online shopping.