June 30, 2014: In a recent report brought out by Boston Consultancy Group as part of the BCG digital influence study 2013-14 it has been revealed that online shopping by urban consumers will double over the next two years. The figure which was 6 per cent last year stands at 14 per cent this year. Boston Consulting Group study reveals that the number of internet users is steadily increasing and that 25 per cent of travel and tourism related sales is done on the internet and is digitally driven.
BCG digital influence study 2013-14 says that the urban internet user base would rise to 47 per cent in 2016 from 28 per cent in 2013. According to the report the total number of urban internet users 45 per cent use only their mobile devices to access the internet and around 57 per cent are above the age group of 25. The report also reveals that it is the small towns where the number of internet users is increasing. 25 per cent of the total internet users in the country are from rural areas and 34 per cent are from small towns. The other findings reported as part of the study are:
- Factors like convenience and access to wider assortment is largely influencing shopping decisions of Indian customers
- Discounts are not the only driving force for people to switch to online shopping as was the case earlier
- Airline ticketing led the online shopping with 25 per cent of sales being completed online last year
- Sales of Mobile/PC’s through online stood at 8 per cent
- 32 per cent searched online about cars before buying but hardly 6 per cent completed sales online.
BCG digital influence study 2013-14 is in addition to a report brought out by BCG on the long term consumption opportunity in India. According to the BCG report, long term consumption opportunity in India is all set to increase from USD900 million in 2010 to USD3.6 trillion by 2020.