Indian Online Retail Market Analysis

  • June 2012
  • -
  • RNCOS
  • -
  • 55 pages

For the past few years, the Indian retail sector has been witnessing tremendous growth, and contributing significantly to the country’s GDP. Though the country’ retail sector is highly unorganized, organized retailing is growing at a rapid pace to grab a considerable market share. According to our new research report, with the growth in organized retailing, the online retail segment is emerging as a new platform in the market. It is estimated that the online retail market will grow at a compound annual rate of around 39% during FY 2013 to FY 2016.

The report, “Indian Online Retail Market Analysis”, finds that online retail has been growing in the country at an unprecedented rate. With the rising internet penetration and broadband availability, and growing culture of Smartphones and tablets, people have started buying products online. As per our study, the major reasons driving the online buying is cash-on-delivery facility, and discounts & offers provided by the online retailers. The busy lifestyle in metros is also propelling people to buy products online. On studying the latest trends and drivers, we observed how the growing sales of kids’ products and grocery are expected to boost the online retail market in India.

As per our research, online retail account for less than 1% of the total retail market in India, and thus, presents a huge growth potential for international retailers. Domestic players are also expanding their reach to the online customers. For understanding the market in a better way, we also conducted a survey on consumer behavior towards online shopping. It revealed that metros or tier-I cities have more awareness about online retailing as compared to tier-II & III cities. It was also found that electronic products are most popular among online buyers. The survey also analyzed buying habits, major reasons for online shopping, purchase preferences, and spending patterns under different price bands.

The government is supporting the growth of organized retailing, and has allowed 100% FDI for single brand retail outlets, and 51% for multi-brand retail outlets. Our report provides an insight into the government policies and regulations (cyber laws), and various industry roadblocks which will help clients understand the market structure. In order to study the competitive landscape, we have also done a SWOT analysis of major players in the Indian online retail market, including flipkart.com, snapdeal.com, and homeshop18.com. We are hopeful that this comprehensive research work will prove decisive for the clients.

Table Of Contents

1. Analyst View
2. Research Methodology
3. India Online Retail Market
4. Understanding the Online Retail Business Model
5. Growth Drivers of the Industry
5.1 Rising Internet Penetration to Speed up Online Shopping
5.2 Increasing Impact of Social Media
5.3 Venture Capitalist Pumping Huge Sums in Online Retail
6. Trends and Opportunities
6.1 Kid’s Products to Boost Online Retail in Future
6.2 Online Grocery Sales Picking up
6.3 Foreign Players Eyeing Online Retail
6.4 Big Retailers Venturing into Online Space
7. Industry Roadblocks
8. Consumer Behavior
8.1 Consumers Desire for “Touch and Feel”
8.2 Purchase Preference for Branded Products
8.3 COD Driving Online Purchase
8.4 Electronics Purchase Holds the Major Share
8.5 Low Ticket Purchases
9. Government Policies and Regulations
10. Competitive Landscape
10.1 Flipkart.com
10.2 Myntra.com
10.3 FashionandYou.com
10.4 Homeshop18.com
10.5 Snapdeal.com
10.6 Yebhi.com
10.7 Future Bazaar.com

List of Figures:

Figure 3-1: Share of Organized and Unorganized Retail (2011)
Figure 3-2: Online Retail Market (Billion INR), FY 2011-FY 2016
Figure 4-1: Online Retail Business Model
Figure 4-2: Major Operational Components Cost
Figure 5-1: Internet Penetration (%), 2011
Figure 5-2: Internet Penetration by User Type (%), 2011
Figure 5-3: Internet Access by Device Type (%), 2011
Figure 5-4: Social Networking Site Users (Million), 2011-2014
Figure 6-1: Forecast for Kids Online Retail Market (Billion INR), 2012 and 2016
Figure 8-1: Share of Online Respondents by Gender
Figure 8-2: Touch ‘n’ Feel Preference by Respondents (%)
Figure 8-3: Branded-vs-Non-Branded Products by Consumer Preference (%)
Figure 8-4: Reasons for Shopping Online by Consumer Preference (%)
Figure 8-5: Major Product Categories by Consumer Preference (%)
Figure 8-6: Spending Patterns of Online Consumers (%)

List of Tables:

Table 5-1: Number of Subscribers (Million), FY 2010 and FY 2011
Table 5-2: Major Investment Deals in Online Retail (Million US$)
Table 6-1: Online Grocers by Major Cities
Table 8-1: Characteristics of Sample Surveyed
Table 10-1: Flipkart.com - Key People
Table 10-2: Flipkart.com - SWOT Analysis
Table 10-3: Myntra.com - Key People
Table 10-4: Myntra.com - SWOT Analysis
Table 10-5: FashionandYou.com - Key People
Table 10-6: FashionandYou.com - SWOT Analysis
Table 10-7: Homeshop18.com - Key People
Table 10-8: Homeshop18.com - SWOT Analysis
Table 10-9: Snapdeal.com - Key People
Table 10-10: Snapdeal.com - SWOT Analysis
Table 10-11: Yebhi.com - Key People
Table 10-12: Yebhi.com - SWOT Analysis
Table 10-13: Future Bazaar.com - Key People
Table 10-14: Future Bazaar.com - SWOT Analysis

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