In Localization 101 – The First Five Steps, we wrote that evolving your ecommerce into a global powerhouse is relatively easy with digital products, but that research is a necessary first step to selling software in different markets. In that vein, many of you probably wonder about the viability of the BRIC markets, which have been popular since the turn of the millennium when Goldman Sachs pronounced the upcoming equivalence of the Brazilian, Russian, Indian and Chinese markets to those of the G7.
This infographic examining the Indian ecommerce market was submitted to us by a reader, and it was produced by HappyCheckout, a coupon site based in Hyderabad, India.
I recommend taking the sales numbers in the second section of the infographic with a grain of salt, as the four charts do not add up. For example, the chart labeled Retail Ecommerce Sales Growth does not correspond with the numbers in the B2C Ecommerce Sales chart, which does not correspond to the percentage growths listed in the Annual B2C Ecommerce Sales Growth chart. The overall numbers in B2C Ecommerce Sales chart are far greater than the numbers I’ve seen in other publications, while the percentage growths in the Annual B2C Ecommerce Sales Growth are smaller.
For better context, refer to Forrester’s India Online Retail Forecast, 2013 To 2018 which states that currently only two percent of India’s population of 1.28 billion are online shoppers, and Forrester’s Capture The Global eCommerce Opportunity report which puts India’s B2C ecommerce market at $7.2 billion.
According to Gartner, “The India eCommerce market will reach $6 billion in 2015, a 70 percent increase over 2014 revenue of $3.5 billion.” Meanwhile, ASSOCHAM (Associated Chambers of Commerce and Industry of India) made headlines last year by stating that the Indian ecommerce market is $16 billion.
What is not in dispute is India’s continued growth and its vast potential, which makes it ripe for vendors to consider as a new potential long term market. There are three important points to remember:
- Mobile shoppers vastly outnumber desktop shoppers.
- Cash on delivery is a required payment method.
- Vendors may have to partner with larger online marketplaces before gaining enough traction to sell directly to buyers.