Average annual spending on online purchases in India is projected to increase by 67% in 2015, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) is predicting.
The industry body expects the average Indian consumer to spend 10,000 rupees ($158) online in 2015, up from 6,000 rupees($95) in 2014.
About 40 million consumers purchased something online in 2014, the ASSOCHAM-PwC study showed. That number is expected to grow to 65 million by 2015.
Better infrastructure in terms of logistics, broadband and internet-ready devices will be fuelling this demand. Online apparel sales, along with the computer and consumer electronics sector, will help fuel overall market growth.
The sector likewise attracted investors, including top global firms and leading industry leaders, while brands like Flipkart and Snapdeal have enjoyed an edge over the global players like Amazon, according to the report.
The Indian e-commerce industry, currently valued at $17 billion, growing at an compound annual growth rate of about 35% each year and will cross $100 billion in the next five years, the study further noted.
D.S. Rawat, secretary general of ASSOCHAM, said smartphone and tablet shoppers will be strong growth drivers, during the release of the study.
“Mobile already accounts for 11% of e-commerce sales, and its share will jump to 25% by 2017,” he said. “In 2015, mobile commerce will become more important as most of the companies are shifting to m-commerce.”
With nearly one-third of internet users already making purchases online, the study noted that e-commerce growth will rely more on increased spending from existing buyers than first-time online buyers.
Moreover, the steady growth in the number of web shoppers also is helping to boost e-commerce sales. Many consumers will prefer the web to bricks-and-mortar retailers in large part because of online deals, about 52% of shoppers said they made purchases online rather than in stores because online retailers offered better deals, the study added.
Other factors contributing to the growth of e-commerce include aggressive merchandising and discounting from flash sale and daily deal, more online loyalty programs and increasing popularity of smartphones and tablet computers among consumers.