E-commerce market to touch nearly $55 billion by 2021

It is expected by the e-commerce market to be at USD 50-55 billion by 2021. Currently, it is at USD 6-8 billion.

According to a report by Retailers Association of India and Boston Consulting Group, on decoding the digital opportunity sectors that could see maximum e-commerce penetration would be consumer electronics, apparel, home ware and furniture, luxury, health, FMCG and food and grocery.

The report also said that by 2025, consumer electronics would see maximum penetration of e-commerce between 38-42 % compared to 13-15 % currently, while food and grocery could see the least growth with 1-3 % of e-commerce penetration from under 1 % currently.

It also said that convenience is the main driving force for buying online. From 40 % in 2014, the report notes that more than 55 % purchase online were due to convenience.

The digital purchasing has been catalysed by progress in infrastructure, including falling smartphone prices, reducing data charges, and rising smartphone penetration.

"Smartphone penetration has increased from 3 per cent to 30 per cent in the past five years. Besides, the prices fell by up to 50 per cent between 2011 and 2015," it said.

It also highlighted the fact that e-commerce adoption has increased 3.8 times from 4 %to 15 % in the over-35 age group between 2014 and 2016.

Similarly, social media adoption has increased 2.9 times from 8% to 23% in the same time period.

The report further noted that in order for companies to take advantage of the current digital wave, they will have to digitise their core business, to unlock significant value.