New Delhi: Annualised GMV for e-commerce companies in India fell 5-10 per cent in a second entertain of 2016 to USD 13 billion, impacted by fewer discounts by players like Flipkart and Snapdeal, investigate organisation RedSeer pronounced today.
“While there was a clever expansion settlement in calendar year 2015, a annualised sum sell value (GMV) run rate for a Indian e-tailing attention forsaken neatly in distance in both buliding of 2016 compartment date,” RedSeer Consulting Founder and CEO Anil Kumar told reporters here.
Gross Merchandise Value or GMV refers to a sum sales done by an e-commerce platform. The quarterly/monthly GMV figure is projected for a full year to arrive during a annualised GMV run rate.
He combined that a run rate has depressed from USD 17 billion in a final entertain of 2015 to USD 14 billion in January-March 2016 and serve down to USD 13 billion in a uninterrupted quarter.
“However, driven by augmenting Internet and smartphone invasion (especially in tier II cities), flourishing ordering income and augmenting comfort with online selling opposite categories, a GMV is approaching to grow during a CAGR of 50-60 per cent to USD 80-100 billion by 2020,” he said.
Talking about a entrance quarters, he said, “Q3 is approaching to be flat, while by Q4, we should see a GMV going behind to about USD 17 billion, helped by a gratifying season”. Kumar attributed a tumble in GMV run rate to e-commerce companies charity fewer discounts as partial of their efforts to diminish money burn.
“Going ahead, we might see a discounts being offering underneath special sale offers instead of being widespread out via a year,” he said.
Asked about converging in a e-commerce attention in India, Kumar said, “We design there will be 2-3 players who would comment for 70 per cent of a market.”
Over a past few quarters, a online sell attention has seen a vast series of acquisitions as good as shutdowns, as some of a companies have struggled to grow amid exhilarated foe and drying adult of financier funds.
Recently, Myntra (which was bought by Flipkart) acquired opposition Jabong for USD 70 million. Last year, Snapdeal had bought Exclusively.com to strengthen a conform business. According to RedSeer, a normal sequence value (AOV) will grow marginally from USD 33 (in 2015) to USD 36 (in 2020), while series of monthly exchange per shopper is pegged to grow from 1.5 to 1.9 over a same time frame.
“While a AOV won’t go adult drastically, a expansion will be driven by further of new users and some-more consumers selling online for high magnitude categories like conform and FMCG,” Kumar said.
The series of internet users in a nation is approaching to grow from 370 million in 2015 to 600 million by 2020. Similarly, a commission of online shoppers is also approaching to go adult to 16 per cent (96 million) in 2020 from 5.7 per cent (21 million) in 2015.
Kumar pronounced users bring reasons like miss of palliate in e-shopping, delayed internet speed and miss of trustworthiness of smoothness for not selling online.
“However, many of these stream barriers will poise usually a singular hazard to online shoppers by 2020,” he added. Going forward, conform is approaching to turn an critical difficulty for e-commerce players, accounting for 36 per cent of a marketplace from 20 per cent now.
“Online conform marketplace has a really low invasion in India, since for mature markets like China and US, a invasion of conform to a altogether attention is as high as 30-35 per cent,” RedSeer Engagement Manager Mrigank Gutgutia said.
Going ahead, e-commerce companies should work on augmenting comfort of shoppers from tier II cities, lower bargain of business with honour to their tangible selling needs and localize promotion campaigns to fuel growth, he added.
“They should also continue to deposit in arguable and quick smoothness to mislay a vital pain indicate among non-shoppers currently,” he added.