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