Online purchases in India to rise by 67% says ASSOCHAM-PwC study

Average annual spending on online purchases in India is expected to increase by 67% from 6,000 rupees to 10,000 rupees in 2015, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) said. The ASSOCHAM-PwC study had showed in 2014 that about 40 million consumers shopped online and the number is likely to grow to 65 million by 2015, reported Enterprise Innovation.

The demand is believed to be fuelled by better infrastructure in terms of logistics, broadband and Internet-ready devices. Online apparel sales, along with the computer and consumer electronics sector, help fuel overall market growth, the report said.

The sector is also attracting investors, including premier global firms. However, top industry leaders like, Flipkart and Snapdeal, enjoy an edge over global players like Amazon, the report said. The Indian e-commerce industry, currently valued at $17 billion, is growing at a compound annual growth rate of about 35% each year and is expected to cross $100 billion in the next five years, the study noted.

The study said that with nearly one-third of Internet users already making purchases online, the e-commerce growth is likely to rely more on increased spending from existing buyers than first-time online buyers.