Market research firm, Forrester has predicted the Indian e-commerce market will rapidly expand over the next five years, according to indiadigitalreview.com.
The ‘India Online Retail Forecast, 2013 to 2018’ report claims that the country’s e-commerce sector is likely to experience a compound annual growth rate (CAGR) of more than 50 percent during this time. If this happens, the market could be worth $16 billion (£9.62 billion) by 2018. This would be eight times the value as the sector was worth last year.
Forrester’s experts said that this impressive rise will happen as more Indian consumers start purchasing online. The data shows 14 per cent of India’s 28 million internet users were buying purchases online last year. This is predicted to increase by 23 per cent of the total online population in the country by 2018.
The report also states that Indian e-tailers are gaining trust from customers because they are strengthening the services they offer. This includes a bigger mobile presence, high engagement through social media and speedy troubleshooting help, according to vccircle.com.
Last year, the number of online retail sales in India grew by 67 per cent. The amount of people purchasing items from a mobile device also increased by five per cent last year, compared with 2012 figures.