India's online shopping spend to touch $1.35 B this year

Wednesday, 20 June 2007, 07:00 Hrs
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New Delhi: Online shopping, which is becoming increasingly popular in India's metros, is likely to record business worth 55 billion ($1.35 billion) in 2007-08 from the current 22 billion, an industry body said here Tuesday.

The trend of shopping over the Internet has taken off more noticeably in Delhi and Mumbai where consumers as well as merchants have become very net-savvy and they are finding the medium easier for conducting the business online, leveraging e-commerce transactions by at least 150 percent.

"Just as Delhi e-shoppers population was 20 percent in 2006-07, in Mumbai it was 24 percent with maximum e-shopping taking place in electronic gadgets, apparel and design purchases, railways, air and movie tickets," the Associated Chambers of Commerce and Industry of India (Assocham) said in a statement.

"The number in percentage increase for e-shoppers in 2007-08 would touch at least 40 percent in case of Mumbai while in Delhi it is expected beyond 30 percent," it added.

The body also noted that people nowadays find it easier shopping online since that saves time, as the products get home-delivered coupled with the facility to shop 24x7 hours.

"Products that will gain popularity in e-sale could include gems and jewellery, online books sale, accessories, apparel, gift products, music and movies, hotel room besides tickets for transportation," Assocham president Venugopal Dhoot said.

The development of e-commerce space is also encouraging both domestic and global firms to strategise their business plans based on the Internet.

According to the chamber, the Internet user population is more than 120 million and is expected to grow at over 200 million by 2008.

"This business module is cost effective, easily accessible and profitable in many functional areas. Consumers and retailers both desire safe, simple and comprehensive online shopping that will truly realize the range of power of the Internet," the Assocham said.

The online system is also proving to be beneficial for the vendors as it reduces their need to visit procurement offices.
Source: IANS
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