The Rapid Growth of e-commerce in India
Over the last two decades, rising internet and mobile phone penetration have changed the way we communicate and do business. E-commerce is relatively a novel concept. It is, at present, heavily leaning on the internet and the mobile phone revolution to fundamentally alter the way businesses reach their customers.
While in countries such as the US and China, e-commerce has taken significant strides to achieve sales of over 150 billion USD in revenue, the industry in India is, still at its infancy. However, over the past few years, the sector has grown by almost 35% CAGR from 3.8 billion USD in 2009 to an estimated 12.6 billion USD in 2013 .
Industry studies by IAMA2 I indicate that online travel dominates the e-commerce industry with an estimated 70% of the market share. However, e-retail in both its forms; online retail and marketplace, has become the fastest-growing segment, increasing its share from 10% in 2009 to an estimated 18% in 2013 . Calculations based on industry benchmarks estimate that the number of parcel check-outs in e-commerce portals exceeded 100 million in 2013. However, this share represents a miniscule proportion (less than 1%) of India’s total retail market but is poised for continued growth in the coming years. If this robust growth continues over the next few years, the size of the e-retail industry is poised to be 10 to 20 billion USD by 2017-2020. This growth is expected to be led by increased consumer-led purchases in durables and electronics, apparels and accessories, besides traditional products such as books and audio-visuals.
Travel Industry in India
Valued at over 50,000 crores, tourism is the largest service industry in India, with a contribution of 6.23% to the national GDP and 8.78% to the total employment in India. In 2014, more than 10 million Indians enjoyed their holidays abroad, while more than 560 million holidayed in India itself. Moreover, the country witnessed a whopping 5 million foreign tourist arrivals in the same year.
According to the World Travel and Tourism Council, India will be a global tourism hotspot from 2012 to 2018. Interestingly, most of the foreign tourists spend more in India than in any other country across the globe and tourist arrivals in India are expected to escalate by 22 percent each year. The tourism industry will continue .to expand and achieve meteoric growth rates over the next decade.
Clearly, tourism is one of the most exciting industries to be in, both as a corporate and as a budding entrepreneur. Come, partner with us, to take advantage of the immense opportunities on offer for mutual growth.