Indian e-commerce industry grows in 2004-05 says IOAI
01 Jul '05
2 min read
Internet & Online Association of India said that the online shopping is growing in India.
If you think e-commerce is yet to take off in India, think again. Online shopping on a high.
According to research conducted by the Internet & Online Association, over Rs 570 crore worth of commerce was conducted online in 2004-2005.
The figure is expected to grow almost four times to Rs 2,300 crore by 2006-2007.
“E-commerce is coming of age in India, thanks to the changing lifestyles and shopping habits,” says Preeti Desai, president of the non-profit outfit that tracks Internet activities.
“Though it is at a nascent stage right now, there's a huge prospect for e-commerce in the country,” said Kiran Karnik, head of the National Association of Software and Service Companies (Nasscom).
Flight and train bookings are contributing to the growth, besides direct purchases.
The study also surveyed 3099 respondents across the country — of whom 55 per cent had shopped online at least once, among them 87 per cent more than once — for insights into the profile of the online shopper.
Among the metros, Mumbai led in all categories, except jewellery, where Delhi came out on top. Calcutta scored in online music sales.
“The rate of growth of the e-commerce industry in India is very encouraging,” said Gautam Thakar, a director of eBay India, the country's largest virtual marketplace.
But a few hurdles have to be crossed, the players and the promoters feel. “There has to be greater PC and Internet penetration and the merchants need to build consumer confidence,” Karnik said.
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