India’s e-commerce market has grown by leaps and bounds in the past few years. In the year 2013 alone, the market grew by a staggering 88 percent, reaching $ 16 billion, driven by booming online retail trends as per a survey by the industry watchdog body Assocham. The growth is boosted by increasing Internet penetration, rise of smart phone usage and availability of more payment options. Although the penetration of e-commerce is still low as compared to markets like the United States and the United Kingdom but is growing at a much faster rate with a number of new entrants.
The growth of consumer base and expansion of market
The e-commerce still only accounts for it’s less than one percent of the country’s mostly unorganized retail market. However, backed by a rising population and young demographics, e-commerce’s expansion in the near future is pretty imminent. India is already ahead of the United States estimated 207 million internet best immigration consultant users and is only second to China’s more than 600 million reported internet users.
The previous year smartphone usage grew by between 170 percent and 180 percent year-on-year, with over 40 million units imported by the country as per data provided International Data Corporation and Cyber-Media Research. All these factors have contributed their bit in giving push to e-commerce in India. India’s retail market is going to be $675 billion by 2016. As such, there is a lot of potential for the e-commerce companies to leverage. Forrester reports that the e-commerce market in India is set to grow the fastest within the Asia-Pacific Region at a CAGR of over 57% between 2012-16.
The top e-commerce companies active in the market are eBay, Infibeam, Flipkart, Snapdeal, and Myntra.com amongst others.
Rise of e-commerce generating new jobs
As major e-commerce companies go onto aggressive expansion mode, hiring will get a fillip and is expected to grow by over 30%. This will help in generation of at least 50,000 new jobs in the coming 2-3 years. A research by human resources consultancy Randstad India has revealed that the hiring is likely to rise by 20-30% in the next years owing to the birth of a greater number of Indian online start-ups and e-commerce MNCs into Indian marketplace.
Unison International, another HR firm says that hiring will pick up in this sector, rising by 33% over the previous year as a number of retail brands are also taking up their business online. Most of these new jobs will be found in metros such as Delhi/NCR and Bangalore. Snapdeal, the top domestic online retailer has its headquarter in Delhi, and thus will produce more jobs in Delhi. Similarly, Flipkart operates out of Bangalore, and thus a large share of the jobs created by the company will remain limited to this city.