E-Commerce industry in India is approximately Rs 1,40,000 cr (USD 20 b). Number of online shoppers are roughly 10 cr. Average shopping value per shopper is thus Rs 14,000.
By 2020, ie, in two and a half years time, these values are set to double. This means value of on line shopping will be USD 40 b and number of shoppers will be 20 cr. The number of internet users in the country is over 50 cr and growing rapidly. By 2020, it may cross 70 cr.
Currently the market is dominated by two players 1. Flipkart (Now Walmart) and 2. Amazon. Walmart has purchased a controlling 77% stake in Flipkart for USD 16 b. While Amazon has already put in USD 3 b out of a committed USD 5 b till now. Between them, they have 60% market share which the share almost equally. Amazon, has been growing faster over the last three years.
Currently, the reach to consumers as well as depth of products, number of suppliers of Amazon is larger. However, the deep pockets of Walmart may change the game. These two companies are global competitors of each other. While Amazon is pure E Commerce, Walmart is both: physical retailing as well as E Commerce. Both of them, put together have made it really tough for smaller players globally.
The imminent entry of Reliance Jio, backed by its own huge internet backbone and over 20 cr consumer database is set to shake the E Commerce world in India.
Though as of now, no other Indian business house is thinking of a serious entry into this segment, yet payment banks of PayTM and Bharti will not silently lay behind. Paytm is already making inroads backed by Tencent, Alibaba and SoftBank.
Huge employment opportunities will be generated here.