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Indian e commerce does not make a mark – India is not in the Top 30 yet


Research and market analysis by A.T Kearney:
The haloed market consultancy agency has recently come out with a global ecommerce report which states that even though we seem to have made great strides in the e commerce arena, we as a nation are still lagging behind. Even inspite of having been a hub of several million dollars, we as a nation are not even in the top league. Visit on for more info.
The numbers:
The above said study which is christened as the “Global Retail E-Commerce Index” categorically states that Indians inspite of having an edge in education and also the freedom of choice, only a total of 3%of Indians have ever shopped online. The percentage is starkly lower than many other countries which are even smaller in size than us. Even countries like Ireland which is only one twentieth of the size of our country has been able to clock more online deals than us.
Everything is not gloomy though:
However the report states that India is showing a promising growth of 27% this year up to now and will soon reach the $3.8 billion mark. The even better news is that consultancies across the globe slate India to grow at an amazing rate of 21 percent in the coming five years at best.
How are the countries judged?
This is a very significant question because it is definitely important for us to know the criteria on which the countries have been ranked. The knowledge is especially important in order to be able t formulate strategies and policies that not only help strengthen the present economic scenario but also further help in increasing traffic at the online shopping sites.
According to the report, the countries were ranked on the following four parameters:

  1. Online market size;

  2. The ability of the nation to adapt to technology and the consumer behaviour that is manifest;

  3. Infrastructure; and

  4. The projected growth potential.

Based on these points, India is not even in the top thirty countries. However, things are looking up and soon India will be a country to be reckoned with.


 The following products and product categories were chosen to represent the sphere of growth in order to gauge the penetration of technology and the adoption of online shopping in people’s day to day lives. They are:

  1. Consumer appliances;

  2. Electronics;

  3. Computer games and hardware;

  4. DIY kits;

  5. Gardening and craft kits;

  6. Food;

  7. Furnishings;

  8. Kitchen utilities; and

  9. Toys.


Which country topped the survey list?
No prizes for guessing here! Indeed USA with a tenth of its population opting to shop online and transfer cash digitally tops the list of the countries. China is a close second. China and India even though at were at par only a decade ago has now entered a different league with 30 percent of its population who shop everything from a pin to a piano digitally. Estimates say that as much as 80 percent of Chinese population has at least once in their lifetime shopped at online portals.
The Alibaba experience:
Only a couple of months ago, on the Singles Day on November 11th Alibaba has sold online goods worth approximately $10 billion surpassing its own records set earlier that year itself.
Which are the top ten countries in the list?
The countries topping the list are

  1. US

  2. China

  3. UK

  4. Japan

  5. Germany

  6. France

  7. South Korea

  8. Russia

  9. Belgium and

  10. Australia.

Here is the interesting bit!

Indians loved to splurge fashion and lifestyle products in the last year. The next most preferred category was buying tickets for shows online. These two categories have shown excessive growth in the couple of years. Even though Indians do not trust enough to buy computer hardware and electronics online, there was a marginal increase seen in the sales of such products as well.

What exactly is pulling Indian online trade down?

  1. Internet connectivity


One of the major drawbacks for a thriving online trade here is the limited internet and mobile connectivity that we experience in the country. Add to this the low speed connectivity and we have one thing that pulls us down. Sometimes, the average speed that we in India experience is 2mbps which is disappointingly low. Imagine how many minutes it takes for a page to download and the time it will take to upload a request. Just damn too discouraging!

  1. Anti net neutrality policies:

And as if low connectivity and poor speed were not enough, anti net neutrality stand by our government and the telecom industry is giving us a tough time. The consumer can do nothing to improve his scope of service but is stuck at the appalling mercy of

the existing telecom plans and tariffs.