E-commerce in India set to cross $229 M mark

By agencies   |   Wednesday, 29 June 2005, 07:00 Hrs
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NEW DELHI: The total value of E-Commerce activities within India has exceeded $130 million during 2004-05, according to a research conducted by Internet & Online Association of India, a non-profit Industry trade organization.

The report estimates a 300 percent plus growth rate during the next couple of years and has targeted $229 million worth of e-business conducted within the country by the year 2006-07.

The IOAI research report conducted in association with Cross Tab Marketing Services has tracked Internet user’s proclivity for shopping online. The research was undertaken with a view to understand the profile, internet usage, products purchased along with propensity to buy along with the nuances of shopping online with the shopper’s affinity and aversions to online shopping.

A total of 3099 respondent’s views were solicited of which 55 percent (1716) had shopped online and 87 percent (1493) had shopped more than once forming the base of the report. Changing Lifestyles and shopping habits make this a shopping medium impossible to ignore. The report makes actionable recommendations on how online retailers can fill gaps in the online environment as well as how they can utilize unique elements of the online shopping experience to create a competitive advantage over the physical retailing world.

Said Neville Taraporewalla, Chairman of IOAI, “The rapid development of E-Commerce is forcing companies today to adopt business strategies revolving around the Internet. The report reflects the changing face of business trends in India. Today, The Internet population is 25 million plus and is expected to grow at 100 million by 2007. The report can act as a guideline on how online retailers can use this new business environment for their advantage”.

Mahendra Swarup, Vice-Chairman of IOAI, added further,“ This business module is cost effective, easily accessible and profitable in many functional areas. Consumers and retailers both desire a safe, simple and comprehensive online shopping experience that will truly realize the range of power of the Internet. The report highlights ground realities of the online shopping environment and shoppers’ attitudes & perceptions towards e-commerce.”

From a business perspective it offers unlimited shelf space, it isn’t bound by operational timings and geographical boundaries and an opportunity to cater to country wide city markets (for consumers and suppliers alike) at a comparative miniscule cost to an audience all set to grow to a 100 million by 2007. From a consumers perspective it allows greater access (hence the high response rate by tier 2 cities) to markets and an opportunity to make informed decisions on purchases.

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