India has seen a new sun. A new sunrise for startups. There has been tremendous growth in the number of startups in the country. Every sector has seen innovation. Smaller to bigger problems all are being addressed by these new companies. E-commerce is the new gold in startup world. Today there are more than 100 e-commerce startups working in India. Biggest of them having a valuation more than $10 billion. The startups from the beginning has followed the discount model to woo customers to their platform. There is a war going on between companies like Flipkart, Amazon, and Snapdeal. They have burned billions to acquire customers. Flipkart recently saw huge drop in its valuations.
Everything has something good and bad with it. E-commerce industry has seen too many players in the year 2015. In 2016 we have seen the market correction. Only the fittest will survive. In the year 2016 the market is strong about profitability, customer acquisition and value creation. India’s e-commerce market was worth about $3.9 billion in 2009, it went up to $12.6 billion in 2013. In 2013, the e-retail segment was worth US$2.3 billion. About 70% of India’s e-commerce market is travel related. According to Google India, there were 35 million online shoppers in India in 2014 Q1 and is expected to cross 100 million mark by end of year 2016. CAGR vis-à-vis a global growth rate of 8–10%. Electronics and Apparel are the biggest categories in terms of sales.
According to a study conducted by the Internet and Mobile Association of India, the e-commerce sector is estimated to reach Rs. 211,005 crore by December 2016. The study also stated that online travel accounts for 61% of the e-commerce market.
By 2020, India is expected to generate $100 billion online retail revenue out of which $35 billion will be through fashion e-commerce. Online apparel sales are set to grow four times in coming years.
Looking at the loses it still is a distinct vision to find profitability. It is also not deniable that Indian market is huge and full of more opportunities.