New Delhi: Times they are a-changing. Just a few years ago there was uncertainty over just how much revenue would be generated through E-commerce shopping. Estimated projections had gone haywire as the trend was considered to be premature for the Indian market. But these apprehensions can be laid to rest now, with indicators that e-Commerce shopping in metros, especially Delhi and Mumbai are expected to exceed 150% and touch Rs 5,500 crores in 2007-08 from the existing Rs 2200 crore in 2006-07.
According to a study carried out by industry chamber, Assocham, Delhi’s e-shoppers are tipped to cross the 30% mark, up by 10% in the last fiscal. Cities which are likely to follow the trend are Delhi, Mumbai and other cities like Banaglore, Chennai, Kolkata,where the list of items in the shopping are on a steady rise.
Reasons contributing to shift in buying habits
* Changing lifestyles which are willing to experiment with new ways of spending money.
* Evolving shopping habits which are more tuned into convenience products.
* Higher usage of internet among merchants, store and boutique owners who are using the net innovatively to reach out to prospective buyers.
* Larger number of internet users.
* Improved quality of e-products and services.
* Media support that has reported consistently on developments in the field including profiling psychographics of the user/customer.
* Delhi e-shoppers’ population was 20% in 2006-07; Mumbai’s was 24%.
* Maximum e-shopping is presently taking place in electronic gadgets, apparel and design purchase, railways, air and movie tickets.
* Percentage increase for e-shoppers in 2007-08 is expected to touch 40% in Mumbai while in Delhi it may well go beyond 30%.
* Products that will gain popularity in e-sales include gems and jewellery, online books sale, accessories, apparel, gift products, music and movies, hotel room besides tickets for transportation.
* Most e-shoppers expressed satisfaction with e-shopping with regard to service delivery.
* Reasons attributing to the jump in the number of e-shoppers was home delivery which saves time; ‘24x7’ hours shopping which cites ease and availability factors for product comparisons.
City specific results
* In Chennai 7% of the population chose to buy daily routine products through e-commerce in 2006-07. This is likely to go up to 11-12% in current fiscal for railway tickets, airline tickets, magazines, home tools, toys, jewelry, beauty products and sporting goods categories.
* In Kolkata 7% which was the prevailing figure may go up by another 3-4% in 2007-08. Here it is online music sales and movies which have reflected the highest sales figures.
* In Bangalore the share is 6% which was mainly for books, electronic gadgets, accessories, apparel, gifts, computer peripherals, movies, hotel booking, home appliances, movie tickets, health and fitness products and apparel gift certificates in 2005-06 will touch 9% in 2007-08.
Popular online sales
* Books (42%), Gifts (35%)
* Electronic gadgets (41%)
* Railway tickets (39%)
* Accessories apparel (36%)
* Computer and peripherals (33%)
* Airline tickets (29%), hotel rooms (20%)
* Music (24%), movies (21%), magazines(19%)
* Home tools and products (16%), home appliances (16%), toys (16%), jewelry (15%)
* Beauty products (12%), health and fitness products (12%), apparel gift certificates( 10%) and sporting goods (7%).
Profile of e-Commerce shoppers
28% of regular shoppers are in 18-25 age group, 48% in 26-35,15% in 36-45 and 9% in the age group of 45-60. 88% of online shoppers are male as against 12% female.
86 % of the user base is educated with a Bachelors or Masters degree and represents an educated audience.50% of online shoppers are at an executive level while 26% of online shoppers are professionals or are self-employed, indicating an assured spending power.
The rapid development of e-commerce is forcing companies to adopt business strategies revolving around the Internet. The report reflects the changing face of business trends in India. Today, The Internet population is more than 120 million and is expected to grow at 200+ million by 2008.