Online grocery shopping in India – some early findings

Vijay Singh

India's e-commerce sector is small in global terms, but growing fast. According to the Internet and Mobile Association of India (IAMAI), the e-commerce market stood at US$3.9 billion in 2009, then grew to US$ 6.3 billion in 2010 and will leap to upwards of US$ 9.2 billion in 2011. Not bad for a country with a small internet penetration (around 7% in 2010).

Of the US$9.2 billion expenditure predicted for 2011, the IAMAI estimates that 81% will go on online travel. A further 8% will be spent on financial services, such as insurance payments and transactions through trading accounts.

However, of most interest to packaged goods companies will be the US$550 million that will go on e-retailing. This segment of the online economy has been growing at more than 30% a year in recent years. It's still small in global terms (China's e-retail sector will be worth around US$50 billion in 2011, by way of comparison), but the sums involved are becoming significant.