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Online retail-both direct and marketplaces-will become Rs 50,000 crore industry by 2016, growing at a rate of 50-55% over the next three years, said a report by Crisil.
That would be over 30 times the size at the end of fiscal 2008.
The segment revenues have grown from Rs 1500 crore in 2007-08 to an estimated Rs 13,900 crore billion in 2012-13 – or a compounded annual growth rate of 56%, it said.
Says Rahul Prithiani, Director – Industry Research, “From around 8% share of the organised retail market in India now, online retailing will zoom to around 18% in 2016. But as a proportion of overall retail -- including the massive unorganised segment -- it will be just over 1% at the end of that year. Yet the potential is huge.
For example, in the US, which is the biggest market for online retail, and the UK, the share of online retail is around 9-10%. Even in a developing market such as China, it is 4-5%.”
Lackluster Sale:
- Most of the retailers advanced sale to first week of January
- Retailers have seen 20-30 per cent during the sale period
- Retail stores seeing 30-40 per cent decline in sales post discounted sales
- Most retailers are selling discounted stuff even after the sale period
- Buyers averse to buying full priced goods in initial days after sale period
