BENGALURU: E-commerce in India turned out to be a massive hit. And certainly the vast Indian population is the reason behind. The large Indian middle class is the best beneficiary of the exciting sales on E-Commerce giants like Flipkart, Snapdeal, Jabong and Myntra. The fact that there are more mobiles in India than people is proved again. Business Standard reports that small towns and cities in India fetch maximum profits to the e-com firms.
Leading firms like Snapdeal, Flipkart, Jabong and Myntra are even ahead of Chinese giant Alibaba in terms of sales transacted on mobiles. Most of them are generating 50-60 per cent of their Gross Merchandise Value (GMV) from mobiles, which have the prospects of going up to 80-90 per cent over the coming months.
Snapdeal, which has crossed a $2-billion GMV, got 65 per cent of its business from mobiles in 2014. Snapdeal’s officials have said this would soon be 80 per cent. On the other hand Flipkart is generating over 50 per cent from mobiles and estimates show this could swell to 90 per cent in a year or so. Jabong like the others is doing quite an impressive job in Mobile shopping. Jabong’s co-founder and chief executive Praveen Sinha says that by the end of 2015 or early 2016, the bulk of Indians would shop on mobiles, more so via apps.
E-com apps have eased customers’ work to shop quicker and smarter. Sinha quotes that, "technology is moving that way and estimates show that mobile devices would attract the biggest pie of business for most of the companies."
Rolling out the 3rd Generation services have supplemented to the stronger growth of mobile sales in India. Also a handsome growth in Smartphone sales coupled the 3G aspect.
In fact, Indian companies have seen 45-50 per cent of total GMV coming from non-metropolitan cities and tier two and tier threetowns. An E-Commerce analyst says, "The Indian market is still evolving but mobile sales statistics have surpassed everyone's expectations, given that Indians like to shop the traditional way."
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