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E-Commerce To See 30% Growth In 2007-08 Boosted By Classifieds, Paid Content, Downloads

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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.

5 Responses to “E-Commerce To See 30% Growth In 2007-08 Boosted By Classifieds, Paid Content, Downloads”

  1. Did go through the report and noticed that 'lack of bargaining' is an inhibitor in today's E-tailing industry. An attempt to solve that problem is lootstreet-dot-com. (

  2. I think the only sector that has taken off in e com in India is travel,both rail and air.IRCTC, a govt concern is the biggest e merchant in the country. There should be a lo of soul searching on that front by all privat players. I feel personally that it is the trust. Having secured the trust of the world in software etc we need to repeat the act within India, before this huge potential can be unlocked. A top executive in a private bank told me he changes his credit card after every trip abroad! The man on the street is still not aware how to protect himself in this new commerce.
    It is welcome that SBI is educating the public on online secutity today. Many more such campaigns should follow from all those who mean business online.

  3. 30% growth isn't enough for indian e-commerce specially for sectors other than air-travel. The challenge here is to educate people about online payment security and charge-backs. Indians don't use their credit cards online due to unwarrented fears. They have no idea that they can dispute a credit-card transaction very easily.
    The problem lies with VISA and MasterCard for running ads like "Mind, body, heart, soul" (pathetic) when they should be removing fear of online payments from the Indian mindset which would increase their revenue many fold.