The rapid growth of internet and mobile telephony in the developed and developing countries has been responsible for the transition in the modes of transaction over the past decade. The growth in internet and mobile telephony has reciprocally been instrumental in the development of new business model i.e. e-commerce.
We have witnessed a sustained growth of the online travel booking industry and new business models for insurance and mutual funds sector. According to First Data Corporation, domestic e-commerce market is expected to grow by 50% in this year, reports PTI release.
The International Monetary Fund reckons per capita income will reach $2,300 by 2016. With more money to spend, city-dwellers lap up online discounts. Roughly a third of all products sold online are shipped to cities with population of 3m or less. Many of them lack supermarkets and other big retailers. The internet offers better deals and a wider variety of goods to choose from.
First Data Corporation Vice President and Country Manager Amrish Rau said that the total market size of the industry stood at Rs 46,520 last year, a massive jump from Rs 8,147 crore in 2007. According to him the online travel booking segment will be the major contributor to this growth.
The release says that the online travel industry comprising rail and air ticket bookings, etc cornered 81 percent of the market share at Rs 37,890 crore last year, he added. The report revealed that while the spends on online air travel bookings grew 39 percent last year over 2010, the rail travel bookings clocked 11 percent growth during the same period.
The e-payments system is also expanding in the mutual funds and insurance segments, apart from the public sector space, with government bodies increasingly adopting this route for both accepting and making payments. The first three months of this year itself saw 31 percent and 28 percent growth in online air travel and train bookings, respectively, pointed the report.
However, among segments such as e-tailing, digital downloads, paid contents subscription, etc, e-tailing contributed 31 percent share fetching revenue of Rs 2,700 crore, Rau said.
According to a report released in March by First Data Corporation, the domestic e-commerce market has the potential to grow between $125 billion and $260 billion by 2024-25.
April 22, 2013, 5:55 am UTC
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