The rise of the Netsummer

BY Ranjan Srivastava| IN Digital Media | 14/07/2007

Ranjan Srivastava

Chief of bureau, Prabhat Khabar

At a recent Nasscom seminar, what Amitabh Pandey of IRCTC  (Indian Railway Catering and Tourism Corporation)told me about online railway ticketing in India, was revealing. More than four lakh railway tickets are being sold every month by IRCTC through the  Internet. Some features of IRCTC¿s success story are: a 100% growth in e-ticketing every year, metro cities share declining, non-metros emerging, Sleeper class and 3rd AC creating major part of e-ticketing.

Also what Gautam Thakar of ebay India (earlier Baazee.com) saidwas amazing. ebay India has 20 million registered users, coming from 240 Indian cities. Before I proceed to explain how e-commerce is increasing in India, let us glance at the data provided by Gautam Thakar about Ebay India : A piece of jewellery sells every 6 minutes.  A mobile handset sells every 7 minutes. A piece of apparel sells every 13 minutes. A MP3 player sells every 17 minutes. A watch sells every 18 minutes. A book sells every 28 minutes. A coin or note sells every 32 minutes. A PC game sells every 32 minutes. A digital camera sells every 40 minutes. A stamp sells every 41 minutes. A toy sells every 66 minutes. A VCD sells every 77 minutes. A laptop sells every 56 minutes. A musical instrument sells every 5 hours. A motor cycle sells every 6 hours. A car sells every 8 hours.

The wisdom coming out of NASSCOM seminar was clear that E-commerce is a growing reality of India. With the recent comeback of Internet, e-com is showing tremendous growth. The second wave of the Internet is throwing up a whole new range of business opportunities that will open up fresh avenues for organizations.

A recent study by IOAI (Internet and Online Association of India) shows that Rs. 570 crore worth of commerce was conducted on-line in 2004-05, the number is projected to jump to Rs. 2300 crore by 2006-07, an estimated increase of 300 percent. The figures, in fact indicate that all¿s well with e-commerce in India and that the market is once again on an upswing. Similarly, a just released India Online report 2006 by Juxt Consult shows that 5.9 million people have bought online, and most buying activity is happening in purchasing tickets. Train, Air and movie tickets constitute the major part followed by Books, electronic items, cloths and accessories.

So, is the Internet new buying destination for Indian consumers? Are we going to see a new phenomenon of netsumers in near future? The IOAI e-commerce report gives us some idea about it.

Released few months back, the report reveals some amazing facts :

• Rs. 570 crore worth of commerce was conducted on-line in 2004-05, the number is projected to jump to Rs. 2300 crore by 2006-07, an estimated increase of 300 percent.
• 55% visitors of e-commerce sites have adopted Internet as a shopping medium. Out of these 55% netsumers, 87% are regular net shoppers.
• 25% of regular shoppers are 19-25 age group and 46% are of 26-35 age group.
• Net shopping is male dominated. 85% shoppers are male, while 15% are female.
• 83% are graduate or more. Net shoppers are an educated audience. 54% are at executive level and 24% are professionals or self employed.
• Except Eastern and Central India, all other parts are showing good growth. Maharashtra, Delhi/NCR, TamilNadu, Karnataka, UP, WB, Andhra Pradesh, Rajasthan, Gujrat and Kerala are the top 10 states, which constitute 99% of e-commerce activities.
• Nearly 60% of e-commerce comes from 4 metro cities, while non-metro have 40% share. Share of non-metro cities is increasing every year and it is expected to exceed metro cities share in next one or two years.

Train tickets, books, electronic gadgets and apparels are the most purchased categories in e-com. Report suggests that 18% shoppers are highly satisfied, 62% are satisfied and 17% are neither satisfied nor dissatisfied. It shows the high satisfaction index of e-com. Netsumers feel that home delivery is the reason behind online shopping, 62% find it time saving, 60% find it 24x7 medium and find it easy to use.

37% online shoppers have adopted this medium in last one year. It indicates the high percentage of new people adopting this medium. 67% online shoppers have purchased something in last 3 months. This also shows the regularity of use of this medium.

E-commerce in India is evolving faster and faster. From 130 crore in 2002-03 to 1180 crore in 2005-06*, Online purchase has shown the power of Indian netsumers. Online transactions by Indian netsumers has grown from 207000 in 2003-04 to 795000 in 2005-06*.

E-commerce is growing because unlike traditional medium, it`s a 24x7 hour shopping mall, where any on can shop anytime, buy almost anything and from anywhere. People can exchange goods and services without the barriers of time and distance. E-commerce has turned the world into a global and unified marketplace. To be an online buyer, you need nothing but an Internet-enabled computer.

For sellers it is a marketplace, where their physical presence is no more important to sell their products. What they need is the update information about their business. E-commerce is a decade old, but it is gaining importance now because of re-emergence of Indian in Indian society.  It has given the birth to a new generation of shoppers, the netsumers. Really, e-commerce is changing the whole nature of business and consumption that we are used to. It is a time when netsumers are rising and changing the way businesses are.