{"id":3007,"date":"2016-08-30T21:00:09","date_gmt":"2016-08-30T15:30:09","guid":{"rendered":"https:\/\/ravi.rajiniravi.com\/blog\/?p=3007"},"modified":"2018-11-24T20:43:53","modified_gmt":"2018-11-24T15:13:53","slug":"e-commerce-contribution-by-categories","status":"publish","type":"post","link":"https:\/\/ravi.rajiniravi.com\/blog\/2016\/08\/e-commerce-contribution-by-categories\/","title":{"rendered":"E-commerce \u2013 contribution by categories"},"content":{"rendered":"<p>This post was written for the Escape Velocity blog and first appeared there.<\/p>\n<hr \/>\n<p>Our last post was on the penetration of e-commerce and the proportion of retail sales contributed by e-commerce , across 5 countries. After reading it, one of our loyal readers asked us for some more information about e-commerce in India. Hence, this time we\u2019re looking at the total value of e-commerce sales contributed by various categories of purchase \/ transaction.<\/p>\n<p><a href=\"https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-Ecom-Contrib-v2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-3008\" src=\"https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-Ecom-Contrib-v2-620x332.png\" alt=\"\" width=\"620\" height=\"332\" srcset=\"https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-Ecom-Contrib-v2-620x332.png 620w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-Ecom-Contrib-v2-440x236.png 440w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-Ecom-Contrib-v2-768x411.png 768w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-Ecom-Contrib-v2-200x107.png 200w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-Ecom-Contrib-v2-400x214.png 400w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-Ecom-Contrib-v2-600x321.png 600w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-Ecom-Contrib-v2-800x428.png 800w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-Ecom-Contrib-v2-1200x643.png 1200w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-Ecom-Contrib-v2.png 1905w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\" \/><\/a><\/p>\n<p>The pie-chart above shows the proportion of e-commerce sales contributed by various categories in India:<\/p>\n<p>(Data source: IAMAI IMRB Icube 2015 )<\/p>\n<ul>\n<li>In India, the total value of e-commerce transactions was a whopping Rs. 125, 732 cr in 2015, and it grew at 28% CAGR between 2012-15.<\/li>\n<li>That online travel drives a bulk of e-commerce revenue in India is a fact that anyone who reads a newspaper is aware of ; this chart adds the details \u2013 61% of the total e-commerce revenue of Rs. 1.25 lakh crore was driven by online travel. Of this, domestic air tickets are the largest chunk, followed by railway tickets, and then international air tickets.\n<ul>\n<li>While online travel grew at a CAGR of 30% over the three years from \u201912 to \u201815, rail tickets (17% CAGR) and domestic ticketing (22% CAGR) are slowing down the growth<\/li>\n<\/ul>\n<\/li>\n<li>What we typically call e-commerce and should more accurately be termed e-tailing \u2013 i.e. the purchase of various types of products online \u2013 is actually just 30% of the total value of e-commerce transactions.\n<ul>\n<li>However, e-tailing grew at a CAGR of 80% from \u201912 to \u201815<\/li>\n<li>The 3 categories within \u2018e-tailing\u2019 that are driving the growth are \u2018Mobiles phones\u2019 (126% CAGR),\u2019consumer durables\u2019 (135% CAGR) and \u2018home furnishings\u2019 (94% CAGR).<\/li>\n<\/ul>\n<\/li>\n<li>The \u2018Food delivery\u2019 segment , albeit relatively small at just 1.4% of total e-commerce, also grew by leaps and bounds with an 89% CAGR from \u201912 to \u201815.<\/li>\n<\/ul>\n<p>Now that we\u2019re familiar with the data for India, let\u2019s compare the proportional split of e-commerce sales in India by category with that in the U.S. :<\/p>\n<p><a href=\"https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-US-Ecom-Contrib-v2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-3009\" src=\"https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-US-Ecom-Contrib-v2-620x332.png\" alt=\"\" width=\"620\" height=\"332\" srcset=\"https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-US-Ecom-Contrib-v2-620x332.png 620w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-US-Ecom-Contrib-v2-440x236.png 440w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-US-Ecom-Contrib-v2-768x411.png 768w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-US-Ecom-Contrib-v2-200x107.png 200w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-US-Ecom-Contrib-v2-400x214.png 400w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-US-Ecom-Contrib-v2-600x321.png 600w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-US-Ecom-Contrib-v2-800x428.png 800w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-US-Ecom-Contrib-v2-1200x643.png 1200w, https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2018\/07\/India-US-Ecom-Contrib-v2.png 1905w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\" \/><\/a><\/p>\n<p>(Data source: IAMAI IMRB Icube 2015 ; eMarketer Apr 14 for US showing 2015 projection, validated through other sources \u00a0)<\/p>\n<ul>\n<li>In e-tailing in India, there is an over-dependence on \u2018computers, durables and consumer electronics\u2019 as compared to the U.S. \u2013 almost 50% of total e-tailing in India vs. 22% in U.S.<\/li>\n<li>If we benchmark to U.S., most categories in India \u2013 e.g. \u2018apparel\u2019, \u2018personal care\u2019, \u2018home furnishings\u2019, \u2018books\u2019, \u2018auto and parts\u2019 \u2013 have the scope to grow faster than \u2018computers, durables and electronics\u2019. Of course, benchmarking to the U.S. is something that could led to wrong conclusions too, as so many e-commerce firms in the hyperlocal space have seen recently ; hence the need to tread carefully after investigating consumer needs, current satisfaction levels and the nature of the gap\n<ul>\n<li>Interestingly, \u2018Auto and components\u2019 is something that hasn\u2019t taken off in e-commerce in India at all, while in the U.S. it is 10% of e-commerce by value. The Indian online car market is limited to \u2018second hand cars\u2019 which is mostly a \u2018classifieds\u2019 business.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>This post was written for the Escape Velocity blog and first appeared there. Our last post was on the penetration of e-commerce and the proportion of retail sales contributed by e-commerce , across 5 countries. After reading it, one of our loyal readers asked us for some more information about e-commerce in India. Hence, this [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3979,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"book_review_cover_url":"","book_review_title":"","book_review_series":"","book_review_author":"","book_review_genre":"","book_review_isbn":"","book_review_publisher":"","book_review_release_date":"","book_review_format":"","book_review_pages":"","book_review_source":"","book_review_rating":"","book_review_summary":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[108,109,72],"tags":[],"class_list":["post-3007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-escape-velocity","category-infographics","category-visualisation"],"jetpack_featured_media_url":"https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2021\/01\/photo-1547139559-c89c59d117611.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts\/3007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/comments?post=3007"}],"version-history":[{"count":2,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts\/3007\/revisions"}],"predecessor-version":[{"id":3012,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts\/3007\/revisions\/3012"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/media\/3979"}],"wp:attachment":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/media?parent=3007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/categories?post=3007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/tags?post=3007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}