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Indian Online Retail Market Analysis

Indian Online Retail Market Analysis

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Publish Date : Jun, 2012| No. of Pages : 55

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For the past few years, the Indian retail sector has been witnessing tremendous growth, and contributing significantly to the country’s GDP. Though the country’ retail sector is highly unorganized, organized retailing is growing at a rapid pace to grab a considerable market share. According to our new research report, with the growth in organized retailing, the online retail segment is emerging as a new platform in the market. It is estimated that the online retail market will grow at a compound annual rate of around 39% during FY 2013 to FY 2016.

The report, “Indian Online Retail Market Analysis”, finds that online retail has been growing in the country at an unprecedented rate. With the rising internet penetration and broadband availability, and growing culture of Smartphones and tablets, people have started buying products online. As per our study, the major reasons driving the online buying is cash-on-delivery facility, and discounts & offers provided by the online retailers. The busy lifestyle in metros is also propelling people to buy products online. On studying the latest trends and drivers, we observed how the growing sales of kids’ products and grocery are expected to boost the online retail market in India.

As per our research, online retail account for less than 1% of the total retail market in India, and thus, presents a huge growth potential for international retailers. Domestic players are also expanding their reach to the online customers. For understanding the market in a better way, we also conducted a survey on consumer behavior towards online shopping. It revealed that metros or tier-I cities have more awareness about online retailing as compared to tier-II & III cities. It was also found that electronic products are most popular among online buyers.  The survey also analyzed buying habits, major reasons for online shopping, purchase preferences, and spending patterns under different price bands.

The government is supporting the growth of organized retailing, and has allowed 100% FDI for single brand retail outlets, and 51% for multi-brand retail outlets. Our report provides an insight into the government policies and regulations (cyber laws), and various industry roadblocks which will help clients understand the market structure. In order to study the competitive landscape, we have also done a SWOT analysis of major players in the Indian online retail market, including flipkart.com, snapdeal.com, and homeshop18.com. We are hopeful that this comprehensive research work will prove decisive for the clients.

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