India is one of rapidly developing e-commerce markets in the Asia Pacific region. The market is expected to reach $6 billion (approx. Rs 3.7 lakh crore by the year 2015, claimed Gartner, a research firm on Friday.
In an official statement by Praveen Sengar, Director at Gartner Research announced that the digital commerce industry is in the nascent stage inIndia. Still, the market is one of the rapidly growing e-commerce markets in the continent.
This comes asIndiarepresents $3.5 billion e-commerce market with a growth rate of around 60 percent to 70 percent per year. However, this percentage is lesser than the 4 percent of the total retail market, added the executive.
Sengar also claimed that the B2C (business to consumer) e-commerce industry market leads in the country, whereas the B2B (business to business) segment is limited to the organizations that drive the online channels to integrate them with their partners and distributors.
The mobile commerce industry is largely increasing with the traction in shopping. The executive added that the marketplaces, food and beverage and consumer product goods companies have debuted in investing in this industry as it is increasing at a rapid pace.
It is claimed by the research firm that only less than 5 percent of the total digital commerce is taking place through mobile. Furthermore, mCommerce is claimed to help the organizations to skip the desktop wave with increase in the penetration of affordable smart devices that have good connectivity and a swiftly growing ecosystem to keep the consumers engaged on mobile.
Moreover, it is added that thirty percent of the traffic for the ecommerce websites arrive from smart devices such as smartphones and tablets respectively. Gartner also added that limited internet penetration in the country combined with low digital commerce volume, several payment modes such as wire transfers, cash on delivery and credit card transactions, higher return rates, logistics and fulfillment challenges and low average order value are creating pressure on the profitability and the viability of the B2C ecommerce business inIndia.