Mobile shopping to drive online retail in India

TechNavio, the tech-focused global research firm, has released a research report on the Online Retail Market in India, which is being driven by increased Internet penetration, more payment options and a growing preference mobile shopping to a CAGR of 55.7% from 2013-2018.

Source: TechNavio.

According to the company, factors driving this growth include increased internet penetration and easier payment options.

“Internet access from cellphones has witnessed a quantum leap in India in the last few years. As of 2013, 81% or 910 million of the Indian population use cellphones. Of these, 105 million use the Internet on their phones,” says Faisal Ghaus, Vice President of TechNavio.

With the increase in popularity of shopping through mobile devices, retail sales through these devices will account for a major chunk of total online retail sales over the projected period, says Ghaus. Numbers from Snapdeal, an online marketplace, support this perspective. In an official statement released by the company, three out of every 10 orders it receives are via cellphone.

TechNavio also says social media will be a key marketing channel for online retailers to specifically connect with current customers and to attract new customers to their sites. As of 2013, India had around 100 million Facebook users, and is poised to overtake the US in the near future.