Fashion & Lifestyle To Overtake Electronics In e-Commerce
The consumer electronics segment which dominates the sales of Indian e-commerce industry at present, will be overtaken by fashion and lifestyle as the largest e-tail category generating about 35% of the overall gross merchandise value (GMV) by 2020, according to a report released by Google India and A T Kearney, a consulting firm.
Releasing the report on Tuesday, Nitin Bavankule, industry director, Google India said, “In fact, every second shopping search on Google today is fashion related. It is an indicator of the things to come over the next two to three years. Lifestyle and consumer electronics will continue to dominate e-tail spend. However, lifestyle will overtake consumer electronics as the largest category (35% and 20% of e-tail spend respectively by 2020).”
The report projected that women shoppers will more than double their share of online spend with 5X growth in number by 2020. “One in four women claim they will start shopping if e-tailers have an offline presence. In our survey, 30% of the current women buyers claimed that they would increase online shopping, if women delivery staff were employed,” the report said.
Interestingly, the report noted that nine out of 10 buyers currently will continue to buy online even if there’s no extra discounting. This is largely because of the factors like huge assortment of products, convenience and availability of multiple brands.
According to the report, it is estimated that the e-tailing will drive 25% of the total organised retail sale in India by 2020 at $60 billion. The report predicts that the total number of online shoppers will grow to 175 million by 2020 from the current 50 million, and that one-third of customers will drive two-third of total online shopping spends.
Speaking about the key findings of the report, Rajan Anandan, VP & managing director, Google SEA & India said, “The e-tailing Industry in India is at an inflection point and will touch 175 million online buyers by 2020.”