Google Forrester: Indian Online shopper base to reach 100 million mark by 2016

According to a report by Google Forrester the consumer confidence to shop online will continue to rise and India will have 100 million online shoppers by 2016.

The report revealed that India’s e-tailing market is at an inflection point and will see rapid growth to become a $15 billion market by 2016.

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The report was compiled by interviewing 6859 respondents covering both online buyers and non-buyers in 50 cities/towns. It revealed that online shoppers base will grow 3x by 2016, and over 50 million new buyers will come from Tier 1 and Tier 2 cities.

The confidence to shop online was on the rise as 71% non-buyers from Tier 1 and 2 cities said they plan to shop online in next 12 months.

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The report also reveled that women buyers in Tier 1 cities were more engaged in online shopping and were also responsible for driving growth in categories likeApparels, beauty & skincare, home furnishing, baby products and jewelry.

The report also projected that 40 million women are estimated to shop online in India by 2016. 2/3rd of online shoppers highlighted Convenience and Variety as major reasons to shop online in addition to discounts.

The report shows that mobile phones emerged as an important access device for online shoppers with 1 out of 3 online buyers transacting on their mobile phones in Tier 1 and Tier 2 cities.

Currently,  over 50 percent of shopping queries were coming from mobile phones, this share was as low as 24% just two years back.

62 percent buyers said they were not satisfied with their online shopping experience. 67 percent buyers also highlighted that the current return process was too complicated and expensive.

63 percent said they were concerned about the safety of transacting online and 65 percent said, they don’t feel comfortable sharing personally identifiable information online.

66 percent of total respondents said that poor connectivity was also a major barrier for them to shop online.


Vishal Kawadkar


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