Mobile Shopping in India to go beyond $40mn in 2016


According to the latest research findings from Assocham and Grant Thomton, Internet user in India is about to grow by 200 million in the following three years. Most importantly these will be new users who will add up to the current strong quantity. Moreover, a majority of this count is likely to be users from the smartphone segment.


$40 million e-commerce purchases by 2016

The present share of online purchase business in India is around $30 million; the same is expected to clock to $40 million by the end of next year. With the Indian government cutting down the list of regulations for the start-up culture to flourish, a positive change is expected and is already visible with the growing interest and investments under the sector.

Indian e-commerce industry is spreading through almost every business category and attracting giant investors from all over the globe.

The Tours and Travels industry is seem to be the leading sector that has a massive share of e-commerce business. It plays a vital role as in comparison to the global platform where it occupies a tiny space. The number of online bookings made by 2011 was recorded to be around 11 million which is likely to bust out to an above expectation figure of somewhere nearing 38 million by this year end.

More importantly according to the data, 75% of the clients making use of the online booking system fall under the age group of 15-35 years.

Travel industry as regained its business like never before after the online booking facility was introduced in India. It has being consuming the largest share in the e-commerce business in repeated quarters year after year. It is calculated to have an average annual growth of 32% between 2009 and 2013. The sector at present covers around 71% of the total Indian e-commerce business and is expected to grown further with a only competition from the food and beverages industry which is also growing in leaps and bounds.

E-retailing in India is another active part of the Internet industry has a 8.7% share of organized business and covers a mere of 0.3% of the total retail shares done in the country. Under the e-retailing sector it is interesting to learn that the business related to women products will win over at 35% by 2016; it is worth noting that the same share was around 26% by the end of 2013.

“55% #shoppers are willing to pay more money if they are provided satisfactory services on #mobileshopping”


Telecom industry trends for 2016

Industry moving towards the 5+1 game:

Clearly India is growing towards being the 5+1 market in the telecom sector. The predictions are that there will be 5 giant private players and 1 state owned entity. This will be the outcome of mergers and spectrum sharing agreements, the recently announcement of Ideal and Videocon is an example.

Profits to swing more towards service and app providers than to telcos:

Major share of the revenue will continue to swings in favour of the data service cum application providers than the telcos. The telecommunication companies will have to fight hard to recover their profit margins as it will continue to shirk even in 2016.

Network experience FIRST, user experience follows:

Operators are working hard to build a solid network experience; this is more essential than providing additional services. Offering good internet speeds and optimum network coverage will be priority to all telcos.

Stricter regulations, scrutiny in place:

Regulatory authorities in India are going hard on telecom operators in monitoring their services, keep their commitments towards their customers and provide quality services on a consistent and transparent basis.

The national market for e-commerce is assumed to grow at a compound rate of 63% per year to grow around $8.5 billion in 2016. There is a massive demand for online retail stores in more than 4000 to 5000 cities and towns around India. This growth is mainly sighted to happen due to the non-existence of physical retail stores in such regions due to the unaffordable operating expenditures.