The above given graph
shows the consequent growth of E commerce in India. This is noticed because of
increase in use of smartphone in the country and the launch of 4g networks
leads to increase in the consumer wealth, the Indian e-commerce market is
expected to grow to US$ 200 billion by 2026. It is evident that e commerce is
increasingly attracting customers from tier 2 and tier 3 cities, where people
have limited access to the various brands but have high aspiration for the
usage of different products which satisfy their needs.
Slowly the segment of
food and grocery is also entering into e commerce about which no one has never
thought of, however with the rapidly changing needs of the consumer and the
environment, change of working habits and consumer seeking adaptability and
convenience, there are now various small and large ecommerce companies selling
provisions and food items like Grofers, Big basket, etc. Around 40% of increase
is accounted in the India’s ecommerce industry’s sales year on year to reach Rs
around 9,000 crore because of the sale periods being announced by the major
ecommerce sites pursuing business into India and have become Key player with
major share in the market.
Also significant growth
is accounted because of increase in the awareness about the ecommerce and
online trading which also resulted in increase in the investor’s interest there
by increasing the investment of the companies carrying out their operations.
Many big established shopping centers like shoppers stop, lifestyle, etc. have
also trading their apparels over the internet resulting in increasing their
scope for the consumer base.
internet penetration in India
showing internet growth in India over the years
Around 4 % increase is
accounted in the internet penetration in 2007, with the passing of years the
internet penetration rose to about 34.08 % in the year 2016, resulting a direct
increase of 89% in 2016 over 2007.
Among the 444 million of
estimated urban population, around 269 million, i.e. 60% of the total
population is already using the internet and the figures are increasing day by
day. Rural India with an estimated population of 906 million as per 2011
census, among them only 17 % accounts for having access to the internet.
Therefore it is believed that there is strong need to increase the network in
the rural areas to make the people aware about the emerging E commerce industry
into the Indian economy system.
When talking about the
analysis of Daily users of Internet it reveals that the people from both rural
and urban areas have daily usage of the internet. Increase and rise in the
internet penetration will trigger the massive ecommerce growth in India. The internet
and ecommerce are directly related to each other and move hand in hand. The
stability of the ecommerce industry is totally dependent upon on the
availability of internet and its reach to the citizen of the country.