Digital Commerce Market Reached INR 81,525Cr In 2014

The digital commerce market was valued at INR 81,525 crores by the end of December 2014, and registered a growth of 53% over 2013. According to the latest Digital Commerce Report by IAMAI and IMRB International, the industry is estimated to grow further at a rate of 33% and cross INR one lakh crores by the end of 2015.

The report further finds that online travel comprised a majority 61% of the whole Digital Commerce pie. Significantly, e-Tailing has grown by around 1.4 times over 2013 and constitute nearly 29% of the overall share.

According to the findings of the report, Mobiles & mobile phone accessories contribute the most, i.e., 41% (INR 9,936 crores) to the e-Tailing segment followed by apparels, footwear & personal items which contribute 20% (INR 4,699 crores). Consumer Durables along with Kitchen Appliances contribute another 14% (INR 3,404 crores). Out of the remaining 25%, Laptops/Net Books/Tablets, Home Furnishings and Books contribute another INR 2,780 crores, INR 1,059 crores and INR 648 crores respectively.

The report also finds that 45% of the Online Shoppers prefer Cash on Delivery as a mode of payment. 21% prefer payment through Debit Card and 16% via Credit Card. The other modes of payment include Internet Banking (10%) and other payment modes viz. prepaid cash cards, mobile wallets etc (8%).

According to the report, the Financial services market has grown at a CAGR of 20% since 2010. In December 2014, this market was valued at INR 4,508 crores. The Classifieds markets have seen a significant growth and are valued at INR 896 crores by Dec 2014.

Other online services market has grown with a CAGR of 73% since 2010 and was valued at INR 2,025 crores by December 2014. This segment includes emerging service categories like Online Entertainment Ticketing, Online Commuting, Online Food and grocery Delivery. Online Food Delivery market has seen the maximum growth (40%) over the last year in this segment and it is now valued at INR 350 crores by the end of 2014.