FOR IMMEDIATE RELEASE Rise in disposable incomes and proliferation of internet drives e‐commerce market in India The gradual growth witnessed in the purchasing power, along with the burgeoning internet usage are the primary reasons driving the e‐commerce market in India. Additionally, lack of time, ease of transaction and the changing mind set of people are further fueling growth in the market significantly, according to a new market research report by Netscribes. Mumbai, India – Apr 23, 2013 – Global market intelligence firm Netscribes has launched its latest report on the "e‐commerce Market in India" which finds a steady rise in the disposable income and proliferation of internet across the country to be the primary drivers for e‐commerce market growth in India. It is anticipated that the tier II and III cities will contribute the most in shaping up the demand curve in the ensuing years. A thorough research on the e‐commerce market shows brimming opportunities for vendors from the mobile internet and social media space. The Indian e‐commerce market primarily comprises of five major segments i.e. online travel, retail, financial services, digital downloads and ‘other services’, wherein the online travel and retail segments dominate the overall pie with a cumulative share of more than 85%. Of all, online shopping or retail happens to be the fastest growing segment in the Indian e‐commerce market. Competition in the market is severe and low consumer loyalty furthers the competition manifold. Revamped business strategies, consolidations and innovation in products/service delivery model have become the most eminent trends in the market. An analysis of the basic causes which boost the market in favor of the players are highlighted as increased disposable income, increasing internet penetration, PC user base and ease of online transactions. On the other hand, issues hindering the profitability of players include the high cost of online advertising, losses incurred in providing Cash‐on‐Delivery (COD) services to end consumers and operational cost stack‐ups. These practical challenges have taken a heavy toll on the vendors operating in the market, especially in the online shopping or retail segment. Since nullifying these challenges is not an easy task for the players, business models are constantly being tweaked and revamped in order to squeeze in maximum profitability. The Indian e‐commerce market is currently brimming with opportunities and vendors are poised to reap substantial benefits from the same. The exponential growth in the usage of mobile internet can be effectively utilized by vendors to gain a deeper market reach. Further, mobile internet can also be beneficial as an effective and efficient marketing medium which paves way for a better customer acquisition and retention process. Additionally, the massive user base of social networking websites have emerged the biggest database for vendors to scout for prospective customers. Advanced analytical tools and applications have made the job easier for vendors in India. Competition in the market is seen to be highly stiff and factors such as low brand loyalty, price sensitivity and affinity towards discounted offers and services amongst consumers, makes the competition even severe. Advanced analytical tools and applications are being constantly sought after by players in order to create a better scope in the market.
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