E-tail sales: India vs China

Growth in e-commerce in India will be gradual when compared with China, says a report by Kotak Institutional Equities Research


Photo: iStockphoto
Photo: iStockphoto

Growth in e-commerce in India will be gradual when compared with China, according to a report by Kotak Institutional Equities Research. The growth in India will be in line with gradual improvements in household incomes and infrastructure development,the report said.

The report suggests that there is a need for e-commerce companies in India to diversify away from sales of mobile phones and electronics, where margins are thin and opportunities for product differentiation (versus competitors) are minimal, unless the online retailer manages to sell products exclusively.

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