E-commerce is the system where various products and services are purchased and sold over the Internet. E-tailing or e-retailing is the integral part of e-commerce. It includes the sale of retail goods on the Internet. There has been an increase in the number of active Internet users in India. With this, there has been a growth of e-tailing and e-commerce in turn in the country.
E-tailing involves the purchase of consumer items such as cameras, computers, home and kitchen appliances, electronic durables, flowers, toys, gifts and other personal items through the Internet.
Market size and growth of e-tailing in India
E-tailing is the second highest component of India’s e-commerce (next to online traveling industry). The contribution of E-tailing industry as of 2009 is 8% in overall India’s e-commerce market size. In 2007, the market size of e-tailing was Rs.978 crores and it was increased with a growth rate of 15% to a size of Rs.1,120 crore in 2008. Its size in 2009 was Rs.1,550 crores showing a growth of 38%. The market size of e-tailing is expected to increase to Rs.2,050 crores in 2010 and Rs. 2,700 crores by 2011 with a growth of 32% each year.
As of 2009, out of total market size of e-tailing, PCs, laptops, computer peripherals, accessories and storage, contributed about Rs.560 crores (36%). The next highest contribution of 25% (Rs.389 crores) was given by cameras and mobiles, followed by personal items such as jewelery, apparels, cosmetics, shoes, watches, and others contributing 19% (Rs.296 crores). The electronic items like TV, audio systems and other accessories accounted for 13% (Rs.203 crores). The home and kitchen appliances (4%) had a market size of Rs. 62 crores and other online products like toys, gifts, and flowers contributed 3% with a size of Rs. 40 crores.