But the study also found that less than 10 million are engaged in active ecommerce today
BestMediaInfo Bureau | Delhi | December 9, 2011
According to a study released by Internet and Mobile Association of India (IAMAI) and Intelink Advisors, about 150 million people in India or around 75 million households are ready for e-commerce in India today. However, less than 10 million are engaged in active e-commerce. The study adopted criteria of income, education and occupation to arrive at the number of household capable of ecommerce today.
The key reasons for this mismatch between potential and actual e-commerce consumers, as Figure 1 represents and identified by the study, are lack of trust, fulfilment issues and shopping experience.
The ‘core’ potential for consumer e-commerce is likely to increase to around 230 million households or 460 million individuals by 2024-25. As Figure 2 shows, the ‘low SEC’ is set to increase at a lower rate with about around 174 million individuals capable of e-commerce.
The potential of consumer e-commerce in India by 2024-25 is likely to touch around 595 million individuals or 297 million households. As Figure 3 shows, 58 million rural households will be part of the ‘core’ potential e-commerce consumers. The study also reveals that ‘poor SEC’ will decrease substantially.
According to IAMAI, the current size of the e-commerce market in India is about $10 billion. Figure 4 refers to estimates of the size of the consumer e-commerce market of India in 2024-25 based on different levels of adoption and two scenarios of growth of businesses and product categories. Under Scenario 1, the size of e-commerce in India by 2024-25 can reach $70-150 billion, and under Scenario 2, the potential is $125-260 billion.