'Digitally Influenced Purchases To Reach $150 Bn By 2016'
Mumbai: With the number of Internet users likely to reach 330 million by 2016, 'digitally influenced' purchases are expected to grow five-fold to $ 150 billion in the next three years, Boston Consulting Group said.
The number of Internet users is expected to jump from 125 million to 330 million by 2016.
"With the growing access and use (of Internet), the digitally influenced purchases, which represent $ 30 billion of consumer spending in the country today, is expected to grow five-fold to $ 150 billion by 2016," BCG said in a report.
BCG surveyed 25,000 Indian consumers on online activities in a broad range of product categories.
"Although online purchases are just a small portion of commercial activity today, the Internet's influence on buying decisions is growing rapidly. This decision influence affects up to five times more purchases than those actually made online," the report said.
Online activities such as product research and price comparisons are shaping the preferences of Indian consumers, affecting what they buy and why, it said, adding that this influence is expected to greatly accelerate over the next five years.
The report further said that digitally influenced consumers earn higher incomes, are disproportionately represented in key product categories, and spend more money on products than their less-connected peers.
BCG added that India's expanding base of online consumers presents an enormous opportunity for forward-looking businesses.
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