Currently, online travel portals drive eCommerce market. But in the near future, e-tailing is expected to drive the growth.
The eCommerce market in India is expected to grow 37 per cent to reach $20 billion by next year on the back of growing internet population and increased online shoppers, according to a PTI report, citing an industry report by Motilal Oswal Securities on eCommerce.
"eCommerce in India is a $11 billion market, and is estimated to reach $20 billion by 2015, growing at a CAGR of 37 per cent over 2013-15," Motilal Oswal Securities said in its report.
The research firm reported that this growth is attributed to the increasing number of internet users, online shopper, fillip in the pre-shopper transaction value and the traction of a significant number of investors in this domain. Online travel portals are considered as the growth drivers of eCommerce market and in the near future, e-tailing is expected to drive the growth.
“Today, 71 per cent of the eCommerce market in India comes from the online travel business, whereas e-tailing constitutes 16 per cent of the market. Going forward, e-tailing will be the biggest growth driver, with expected CAGR of over 60 per cent to $7 billion in 2016 from $1.7 billion in 2013. Within e-tailing, fashion is likely to be the driving segment," the report said.
Discounts on online sales is also considered as one of the major booster in the eCommerce industry, as reported by the research firm.
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