/Digital Commerce to Reach INR 2, 37,124 Cr by December 2018

Digital Commerce to Reach INR 2, 37,124 Cr by December 2018

India Smartphone Growth Story Continues to Shine
The Digital Commerce Market has grown at a CAGR of 34%, between December 2011 and December 2017 to reach INR 2, 04,384 crores by the end of December 2017. It is estimated to reach INR 2, 37,124 crores by December 2018, according to the Digital Commerce report 2017, published by the Internet and Mobile Association of India (IAMAI) and IMRB Kantar, today.

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The report finds that Online Travel industry continues to grow strongly with 54% share while share of online non-travel has improved over the previous year to reach 46%. According to the report, spend on online non-travel segment showed a higher Y-o-Y growth of 27% between 2016 and 2017, as compared to 16% Y-o-Y growth of online travel segment. In December 2017 share of e-tail was around 36% of the total digital commerce spends.

Domestic air ticket and railways booking continued to be among top contributors to the Online Travel spends.  These were the segments that were the top contributors in previous year as well. Bus/Cab Booking witnessed a substantial movement with a Y-o-Y growth of49%, from INR 3474 crore in December 2016 to INR 5174 crore in December 2017. Domestic Air Tickets Booking was the highest contributor in this segment with 19% Y-o-Y growth from INR 38,160 crore to INR 45,560 crore in 2017. The e-travel market is expected to reach close to INR 1, 29,600 crore by December 2018.

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The report also finds that E-Tailing maintained a strong performance with a 23% Y-o-Y growth. In the E-Tail category, Mobile Phone and Mobile Accessories continued to be the top contributor to the overall pie. The rise in ‘budget Smartphones’ from multiple brands retailing online only in India could be the explanatory factor. Other product categories that registered sharp growth are apparel and personal health care products. These two categories collectively accounted for 62% of the overall spend in E-Tail segment. The E-Tail segment is expected to reach around INR 87,300 crores by December 2018.

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According to the report, online utility payment market (e.g. payment for DTH/ Telephone Bills/ Electricity Bills etc.) registered close to 63% growth between 2016 and 2017. The market reached approximately INR 10,201 crores in terms of overall online transactions as of December 2017. Continuing at the same growth rate, the market is further expected to reach 13,000 crore by December 2018.

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Other online service market that includes online bookings done for entertainment, online grocery and online food delivery, was INR 4,170 crore in Dec’2016. In December 2017, the market reached close to INR 6,060 crores. Online grocery delivery is the top contributor within this segment with a market value of INR 2,200 crores. This segment is expected to reach INR 7,800 crores in Dec’2018.

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