The document discusses projections for growth of the e-tailing industry in India. It states that India's e-commerce sector is expected to reach USD 28 billion by 2020 due to an increase in the number of buyers and stable annual spending per consumer. Additionally, it is estimated that India's e-commerce industry will reach $120 billion by 2020 and e-tailing will account for 33.5% of all travel and non-travel commerce by 2017. Sellers will need to grow at a rate of over 5x to meet increased demand, and recent regulations capping sales from a single seller at 25% will drive diversification of seller bases.

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'Indian e-tailing industry may touch USD 28 billion by FY2020'
India'se-commerce sectorisexpectedtotouchUSD 28 billionbyFY2019-20 on account of an increase in
numberof buyersandstable annual spendsperconsumer,accordingtoa report.
eTailing India Thought Corner
eTailingIndiamarksthatIndia’s e-commerce industryisestimatedtoreach$120 billionby2020.

2. wwww.etailingindiaexpo.com
It saysthat by 2017, the overall share of etalingine-commerce industryintermsof revenue inTier1
and Tier2, 3 citieswouldbe 65% and 35% respectively.Alsoby2017, e-tailingsectorwould be 33.5%of
all the travel and non-travel businessine-commerce ecosystem.
Growth inOnline sellers:
Sellerswill needtogrowat a rate of 5X+ to serve andmeetthe increase indemand.The recent
regulatorycapof 25% forsalesoriginatingfromasingle sellerwill furtherdrive the playerstodiversify
theirsellerbase.
Reasons for buying:
Accordingto a reportby Google-A.T.KearneyStudy,
 For currentonline buyers,productassortmentandconvenience of orderinganddeliveryare the
top 2 non-discountpurchase reasons.
 Newbuyerswill alsovalue the same factors;throughconvenience will be the toppurchase
driver,overassortment.
 The report statesthat digital interactionwill playakeyrole indrivingcustomerstobuyonline
and particularlyetailerwebsite.
 Customerswill demandanOmni-channel presence;nothavingone couldcause playerstolose
out on20-30% of potential buyersinselectcategories.

3. wwww.etailingindiaexpo.com
Identifiedbarriers:
As adoptionbarriersare overcome,125 millionnewshopperswillbe addedonline by2020.Long
deliverytime,customersatisfactionandlackof ‘touchand feel’andare the top 3 barriersfornon-
buyerstoday.For categoriessuchasJewellery,Personal Care andFurniture,overcomingthe needfor
touch andfeel will be keyfactor.
Image Courtesy:Google-A.T.KearneyStudy|May2016
Etailing industry will see a tremendousrise and consequently, competition. For sustainability,online
playerswill need to build a valueproposition around non-discountrelated needs.