The booming ecommerce market in India has attracted VC’s to fund the next Indian ecommerce success story. Several Indian ecommerce startups like Flipkart, Myntra, snapdeal & others have already made a big name in Indian ecommerce space. Many are planning for expansion, M&A & others to gain new markets.
Accel Partners India has brought out a study on the ecommerce in India & how it is shaping up.
1) Online shopping of physical goods in India, will grow to $8.5Bn in 2016. Number of online shoppers in India will more than double to 40M. The study doesn’t take into consideration travel, ticketing and food ordering.
2) Last year saw the rise of fashion category – fashion e-commerce GMV doubled since 2012.
3) People are becoming more comfortable in ordering higher priced items online.
4) 35% of Online GMV in 2016 will be influenced by Women.
5) Tier 2 cities growing faster in ecommerce adoption. Potentially 40M shoppers between ages of 19 – 24 years, will start spending money online
6) Last year there was a big jump in average order value with new categories like jewellery, home decor & others.
comScore has released the 2013 India Digital Future in Focus report. This report provides an overview of the Indian web usage, online videos, social networking in India & other India related Internet & Digital information. It also provides trends in Indian Retail, Travel, Entertainment & other sectors.
Internet Usage in India is growing rapidly & this has led to a boom in the Indian eCommerce sector. Advertising, Social Network & others are some of the other areas growing rapidly. E commerce which was limited to Metro & tier 1 cities is expanding beyond this now. VC funding for the online shopping sites is a great example of this Indian growth story.
Some of the highlights from 2013 India Digital Future in Focus are:
1) 73.9 million home and work internet users in India. China & US are in the top 2 positions & India is at 3rd.
2) Women between the ages of 35-44 form the heaviest internet users in India
3) Blogging audience stands at 36 Million visitors with 485 growth in the last year
4) 54 million internet users in India watch Online videos
5) India has overtaken Japan to become the world’s third biggest Internet population.
6) Apparel is the fastest growth category in India with 13.4 million unique visitors.
With the era of dotcom boom over, social media & networking is playing a key role in the new startups. With Indian economy booming, several VC’s are investing in India. This has led to a boom of startups in India & several tech startups are doing well. SOme of the top Indian startups are snapdeal.com, flipkart.com, redbus.in, myntra.com, yebhi.com & others. Some of these startups are also advertising & promoting on social media websites & TV. This has led to job creaion in startups also. Even the international media is also focussing on Indian startup story. Will India ever produce the likes of facebook, twitter & others which have a huge international following.
With millions of Indians on facebook, companies are finding it easier to reach the audience through facebook. Some of the companies in India advertising on facebook include reliance mutual fund, Myntra, Kingfisher, Airtel, Chevrolet Cruze, Toyota & others. These ads are usually linked to a landing page or to facebook brand pages. Companies are using Facebook advt during the launch of a new product/service, to connect with their exisiting customers & others. It has been recently found that most of the users who like a brand page are already the customers of the product/service. So facebook marketing can also be used as a customer relationship marketing. Brands use it to announce special offers, limited edition products & others. Daily deal sites in India are also one of the major advertisers on facebook. Facebook has more than 750 million members & this provides a great source for the brands to connect with the customers.