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E-commerce is set to grow at a 30 percent pace to touch Rs. 9,210 crores in 2007-08 from Rs. 7,080 crore in 2006-07 boosted by strength in the classifieds, subscription and downloads businesses, according to the latest Internet and Mobile Association of India (IAMAI) report. Of course, readers please remember that the IAMAI has every reason to paint a rosy picture about the e-commerce business considering its mandate is “to expand and enhance the online services sector.”
The online travel industry, which is growing from a larger base, is estimated to grow 27 percent to Rs. 7,000 crore from Rs. 5,500 crore. Online classifieds is seen expanding 52 percent to Rs. 820 crore from Rs. 540 crore, while paid content subscription is expected to rise 50 percent to Rs. 30 crore from Rs. 20 crore and digital downloads could also increase 50 percent to Rs. 255 crore from Rs. 170 crore. E-tailing is estimated to jump 30 percent to Rs. 1,105 crore from Rs. 850 crore.
While convenience and time saving were the top reasons for shopping online, the biggest complaints regarding the online shopping experience seems to be distrust about product quality and inability to bargain.
The study’s research methodology included reference to secondary data sources and IMRB’s I Cube 2006 report, which is based on a large scale primary survey covering 65,000 individuals across 26 cities in India. Primary research was done through in-depth interviews with large and medium-sized B2C and C2C E-Commerce players.
Download the report here.