Flipkart: India e-commerce could hit $70B by 2020

The Indian e-commerce company expects a fast growing Internet-connected population and smartphones to be the biggest drivers to online shopping driver over the next few years.

India's e-commerce market could reach US$50 billion to US$70 billion by 2020, a huge jump from the US$13 billion seen last year, according to the country's largest e-commerce firm Flipkart.

Read this

Asia's e-commerce sites can outsell Amazon

More specifically, China, which can leverage its manufacturing hub and market size. However, e-commerce sites in the region should first resolve key challenges with user interface, service support, and logistics.

The growth momentum will be fueled by on the back of a fast growing internet-connected population and improvement in related infrastructure like payment and delivery systems, Flipkart co-founder and CEO Sachin Bansal told IANS in an interview.

"Consumer mentality and shopping patterns are changing very fast. Online shopping is going to become mainstream in the coming five-six years," Bansal said in the report.

Among the factors driving the growth momentum will be the rising adoption of smartphones , which will pave the way for e-commerce in Tier-II and Tier-III cities.

The Flipkart CEO pointed out India's e-commerce industry was still at a nascent stage, with online shopping accounting for less than one percent of total shopping in the country. For example, online sales worldwide hit US$1.22 trillion in 2013, with China alone reaching around US$200 billion.

However, logistical issues may prove to be a hurdle with only around 10,000 out of over 150,000 postal codes covered by courier companies.


You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.
See All
See All