New Delhi: The market size of online retail industry in India is likely to touch Rs 7,000 crore by 2015 due to increasing internet penetration across the country, a survey on Sunday said.
Currently, the online retail market stands at Rs 2,000 crore and is growing at an annual rate of 35%, industry chamber Assocham said.
“India is set to become the third largest nation of internet users in the next two years...Leading companies have gauged the potential of online retail industry and are gearing up fast to cash in,” it said.
Out of the 5,000 shoppers participated in the survey, about 40% said they prefer to shop online considering convenience to shop anytime and one can collect detailed product information.
“Besides, one can research variety of products available and can easily compare prices from different vendors anywhere in the world,” it said.
Among big cities, consumers in Mumbai topped the chart in doing online shopping followed by Ahmedabad and Delhi.
“Majority of consumers also said they shop online to purchase products that cannot be found in malls and the local markets,“ the survey notes.
20% of those interviewed preferred to shop at local traditional markets because of the familiarity, easy access, variety of goods, and relationship with shopkeepers.
Around 65% of people in Mumbai said they opted for online shopping due to rising fuel prices.
The survey showed that 20% preferred shopping in a mall, while 10% said the local traditional markets catered to their needs.
In Ahmedabad, 55% of the respondents said they prefer shopping online, followed by Delhi (45%).
“Facilities such as free shipping, product ratings/reviews, multiple payment options, product demonstration videos and free return policy, influence the purchasing decision of consumers shopping online,” the survey added.
The survey also found that 30% of the respondents conducted online research on the products and services before buying them from a store, while 25% of respondents did not want to share financial information online and hence did not shop online.
The survey also revealed that 15% lacked faith in delivery of the goods, while 10% said they could not shop online as they did not have a debit/credit card.