IDC study finds B2C e-commerce in India growing at 79%
By Our Convergence Bureau | 08 Nov 2002
Mumbai: The Indian business-to-consumer (B2C) e-commerce market is expected to grow by 88 per cent in 2002 to reach Rs 238 crore.
According
to a forecast by the International Data Corporation (IDC),
which tracks the information technology market, B2C spending
will cross Rs 2,300 crore by the end of 2006 at a CAGR
of 79 per cent.
An IDC press release said it did extensive research among the Internet shopping websites and the people who have actually bought on the Net to map the B2C e-commerce market in India.
In terms of volume of transactions, music CDs, gift items, books, and consumer electronics topped the list, but in rupee terms, gifts and consumer electronics were at the top, closely followed by travel.
Munish Myer, head, Internet, communications and convergence research at IDC (India), says: “Travel has emerged as the fastest growing category for the B2C e-commerce segment. Currently it is estimated to be contributing 23 per cent to the B2C market and is expected to account for nearly 60 per cent of the B2C market by 2006. With the railways and domestic airlines launching online sale of tickets, this segment is expected to grow at 140 per cent.”
Mobile phones are the second-fastest growing segment.
Internet-assisted commerce has also grown by around 70 per cent over 2001 and is estimated to be Rs 210 crore for the year 2002. Financial services and home loans account for 45 per cent of this segment, followed by automobiles and real estate.
A survey among those who have actually bought through the Internet showed that while 40 per cent preferred shopping in focused shopping sites, an equal number did not distinguish between shopping sites and portals offering shopping among other things. www.bazee.com was a strong favourite, with nearly 35 per cent of the buyers having transacted on this site.
Cash on delivery is the most preferred mode of payment, followed by credit cards.
Dinesh Jindal, senior analyst, ICCR, said: “What is heartening is that more than 80 per cent of net buyers termed their online experience as satisfactory or highly satisfactory. This is very important because these people will act as referrals for these shopping sites and will be instrumental in getting more people to the net. Prompt customer service and ability to track the order is something that most of the buyers value.”