E-commerce set to take off in India
With an increasing number of Indians making purchases online the e-commerce market is growing rapidly and along with it the fortunes of the air cargo sector.
March 6, 2014
With an increasing number of Indians making purchases online the e-commerce market is growing rapidly and along with it the fortunes of the air cargo sector. Indian e-commerce, now worth an estimated US$3.1 billion annually, has grown at a compounded annual growth rate of 30 per cent since 2009 and is expected to become an $18billion industry by 2015.
The findings are part of report titled, ‘Indian Ecommerce – Tip of the Iceberg’, by Macquire Equities Research which cites this high growth rate on rising internet population, over 300 million middle class population, increasing mobile penetration and low levels of e-commerce activity currently.
“Compared to the west, India’s ecommerce industry is still in its infancy.
E-commerce contributes only 0.6 per cent of the country’s GDP vs 1-3 per cent for other countries, with only 12 per cent of India’s online population transacting online vs 64 per cent for the US and over 50 per cent for China,” said the report.
Oliver Evans, chairman, The International Air Cargo Association (TIACA) and chief cargo officer, Swiss International Air Lines, said during a panel discussion at the Air Cargo India 2014 event in Mumbai recently, that the e-commerce segment has a huge potential. “As shopping on internet expands, it will speed up demand and that will contribute towards positive movements in the air cargo business.”