E-tail in India to touch $60 b by 2020: Report

E-tail in India to touch $60 b by 2020: Report

With $60 billion in GMV (gross merchandise value), e-tailing is set to take up a quarter of the total organised retail in India by 2020, says the ‘Digital Retail 2020’ report by Google and ATKearney.

The consumer insights report, which was released on Tuesday focuses on the drivers of the next phase of ecommerce. The number of online shoppers is set to triple while a third of the total customer base will drive two-thirds of the total spend.

As per the report, 125 million new shoppers are expected to come online to add up to a cummulative 175 million by 2020.

Delayed gratification, lack of touch and feel and long delivery time are the top barriers for non-buyers, it enumerated. Making a move beyond discounts, product assortment and convenience will be key to purchasers.

In the other side, online sellers will have to grow five-fold to serve the increased demand, it said. While the growth needs to happen across categories, product volumes will have to grow ten-fold.

In that, the industry will move towards service differentiation with some customers willing  to pay for select premium services.

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