Online Shopping has become the growing trend in India. According to Statista reports suggests that in 2020, over 329 million people in India are expected to buy goods and services online, up from 130.4 million in 2016. The number of both buyers and sellers are increasing daily by an enormous percentage. According to a reliable source, India’s e-commerce market is expected to breach the $100-billion mark by FY20 and apparel industry would be the largest segment. However clothing is still a major product of online sales, there are other items which are in high demand of online buyers. Listed below are some the most popular products that are sold online in India. So, if you are new to online business, have an insight on the market trend and choose wisely for your online store.
Number of digital buyers in India from 2014 to 2020 (in millions)
1. Fashion [Apparel]
Apparels and footwear is probably the most searched item online in India. Nitin Bawankule, Google India director (e-commerce and online) quoted at an event that “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”. Apparels include Women clothing, men’s clothing, and children’s dresses.
2. Consumer Electronics and Smart Phones
In this category, the clear winner would be mobile phones. According to the recent study, 61% of smartphones are sold online in top 5 cities. This category also includes home appliances, pen drives, laptops, power banks, digital cameras etc. As long as the technology improves, the demand for consumer electronics will come along the way. By 2025 India is expected to become world’s 5th largest consumer durable market.
3. Baby Care Products
Another significant product which has garnered huge revenue for Indian online retailers is baby care products. Any product that promises to meet the demand for taking care of an infant, generally between o-4 years of age, falls under baby care industry which includes baby food, wipes and diapers, apparels, toys, hair care, skin care etc.
Buying a book can be time-consuming if buying from the open market. With many national and international players, it is easy for a buyer to buy their selected books from these sites. The interactive online medium has opened the variety of avenues for e-business, in which the online bookstore industry is one of the fastest growing e-business industries in India. With growing e-commerce, Indian book market all set to become Rs739 billion industry by 2020 [Your Story].
5. Beauty Products
According to Economic Times, India’s retail beauty and cosmetics industry is currently estimated at $950 million and is likely to almost treble to $2.68 billion by 2020.
According to a recent report by Research and Markets named “India Cosmetic Market Overview” (November 2016), the country’s cosmetic market was growing with a CAGR of 17.06% over a period of five years. In 2008, the industry growth was counted to be 7% and it did a business of USD2.5 billion. In 2016, the market size of India’s beauty, cosmetic and grooming market was USD6.5 billion and is expected to reach USD20 billion by 2025, according to a report by Assocham (2016).
A report by KPMG wellness sector (2014) states that India’s beauty market will reach Rs.80,370 crore by 2017-18. It was Rs.41,224 crore in 2012-13. The report also indicates that the workforce requirement will grow to 12.1 million in 2022 from that of 3.4 million in 2013. According to the CII, the total Indian cosmetics market is of USD950 million, which indicates a growth of 15-20% per annum.
6. Home Décor Items
Online selling of home décor has gained momentum in recent years in India. Online sellers are able to offer variety range of home décor products which can be used in outdoor and indoor as well. Online customers have a variety of options to choose from, including products from international and local sellers. According to Technavio’s analysts forecast the online home décor market in India to grow at a CAGR of 50.42% in revenue over the period 2014-2019.
A Euromonitor report pegs the Indian online jewellery market at Rs 5,310 crore, up from Rs 1,000 crore in 2011. A substantial number of visits to online gold and diamond jeweller CaratLane are to browse and buy relatively small ticket items.”There have been close to 2 million visitors to the website with a chunk of visitors discovering products online and making their purchases in our offline stores,” says Avnish Anand, co-founder, CaratLane.”Those who do purchase online, confine themselves to spending no more than Rs 20,000,” he says. Customer issues about trust and the need to touch and feel jewellery. Innovations like 3D printing, customization, and try-it-out options keep customers hooked. [Source: ET]
According to ASSOCHAM-Resurgent India Study, Online retail consumers to cross 100 million by 2017-18. Daily used items like rice, pulses, salt, sugar, cooking oil, spices, and toiletries are now sold online at a lesser price compared to market rates. For people with little time for visiting market regularly, such an online option is splendid.