E-Commerce market likely to touch $128 bn mark by 2017
The study titled ‘Future of e-Commerce: Uncovering Innovation’ conducted by the Associated chamber of Commerce and Industry (ASSOCHAM) and Deloitte has observed that the digital commerce market in India has grown from $4.4 billion in 2010 to $13.6 billion in 2014. Key merger and acquisition deals, including those between Softbank and Snapdeal; Flipkart and Myntra; and Ola Cabs and TaxiForSure and sky-rocket valuation of these e-commerce giants in the last one year create space for this unprecedented growth. Owing to widespread mobile usage all over, big players in the digital commerce space claim to have more than 50% of their revenue coming from mobile apps and are gearing up for more efforts on increasing their penetration through mobile apps, the study said. D S Rawat, General Secretary, ASSOCHAM, highlighted several challenges faced by the e-commerce companies, especially in supply chain and logistics management in rural areas. He also expressed concern over the lack of clarity in the existing tax norms for online businesses. “The complexity has further amplified with transactions happening across borders for online selling of goods and services. Moreover, e-businesses do not take sufficient steps to deploy a security solution, which is hindering the consumer growth transacting online,” he added. The study pitches for analytics, autonomous vehicles, social commerce, and 3D printing as newer technologies that could significantly bring a paradigm shift in the online businesses. Shopping online through smart phones is proving to be a game changer, and industry leaders believe that m-commerce could contribute up to 70% of their total revenues, the study added. Besides, the government’s ‘Digital India’ project which aims to offer a one-stop shop for government services will further bolster the sector by introducing internet and broadband to remote corners of the country and increase trade. This initiative through a targeted investment of nearly $17 billion will transform India into a connected economy and also attract investment in electronics manufacturing and create millions of jobs, said Rawat.
December 08, 2015 | 02:55pm IST