A recent report generated by PTI revealed that the way ecommerce marketing is growing in India, it is expected to reach $20 billion by next year with a growth of 37%. The main reasons that support this growth are the growing internet population and increased online shoppers in the country, as per the report.

“E-commerce in India is an $11 billion market, and is estimated to reach $20 billion by 2015, growing at a CAGR of 37% over 2013-15,” Motilal Oswal Securities said in its report on e-commerce.

Some of the main growth enablers as per the research are:-

• Increase in the number of internet users
• Augmented proportion of online shoppers
• Rise in the per-shopper transaction value
• Constant flow of funds by willing investors.

The report also revealed that although online travel was dominating the e-commerce market so far but in the future, e-tailing will drive the growth. 71% of the e-commerce market in India was constituted by the online travel, followed by e-tailing with 16%. Over 2009-13, travel has grown at a CAGR of 32%.

“However, going forward, e-tailing will be the biggest growth driver, with expected CAGR of over 60% to $7 billion in 2016 from $1.7 billion in 2013. Within e-tailing, fashion is likely to be the driving segment,” it said.

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Fashion was found to be $559 million in 2013, and as per the estimation the growth in fashion e-tailing is pegged to anywhere between $3 billion and $6 billion by 2016. Moreover, the research firm also said that the heavy discount on online sales is clearly signaling about the industry’s competitive intensity.

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