Digital Commerce to reach Rs 220,330 cr by Dec 2017: IAMAI-IMRB

22 Jun,2017


By A Correspondent


The Digital Commerce Market has grown at a CAGR of 30 per cent, between December 2011 and December 2016 to reach INR 168,891 crores by the end of December 2016. It is estimated to reach INR 220,330 crores by December 2017, according to the Digital Commerce report 2016, published by the Internet and Mobile Association of India (IAMAI) and IMRB Kantar.



The report finds that Online Travel industry continues to grow strongly with 56 per cent share while share of online non-travel has improved over the previous year to reach 44 per cent.



Domestic air ticket and railways booking continue to be among top contributors to the Online Travel spends. These were the segments that were the top contributors in previous year also. Hotel Booking has seen a substantial growth of 60 per cent, from INR 5200 crore in December 2015 to INR 8320 crore in December 2016. Domestic Air Tickets Booking is the highest contributor in this segment and has grown 20 per cent from INR 31,619 crore to INR 38,160 crore in 2016. The online travel market is expected to reach close to INR 1, 18,598 crore by December 2017. The segment was valued at INR 95,198 crores in December 2016.



The report also finds that E-Tailing maintained a strong performance with 59 per cent growth. In the E-Tail category, Mobile Phone and Mobile Accessories continue to be the top contributor to the overall pie. Another product category that has registered sharp growth is apparel, personal health care products and accessories. These two categories collectively account for 60 per cent of the overall spend in E- Tail segment. The E- Tail segment is expected to reach around INR 94,964 crores by December 2017. It was pegged at INR 59,876 crores in December 2016.



The report also finds that Online utility services market (eg: payment for DTH/ Telephone Bills/ Electricity Bills etc) registered close to 20% growth between 2015 and 2016. The market reached close to INR 6277 crores in terms of overall online transactions as on December 16.  The segment is expected to reach INR 7,532 crore by December 2017.

Other online service market that includes online bookings done for entertainment, online grocery and online food delivery, was pegged at INR 3823 crores in December 2015. In December 2016 the market reached close to INR 4,170 crores. Online food delivery is the top contributor within this segment with a market value of INR 2,040 crores. This growth is expected to continue in future and the market is expected to reach INR 4,587 crores by December 2017.


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