150 million Indians are e-commerce ready: IAMAI

The study released by IAMAI has projected that e-commerce potential will increase from 146 million households in 2009-10, to 229 million households in 2024-25.

A report on the Consumer E-commerce Potential in India released by the Internet and Mobile Association of India (IAMAI) and Intelink Advisors says that about 150 million people in India are ready for e-commerce today. The report further highlights that less than 10 million are engaged in active e-commerce today.

150 million Indians are e-commerce ready: IAMAI

The study states that the key reasons for this mismatch between potential and actual e-commerce consumers are lack of trust, fulfillment issues, and shopping experience.

Commenting about the measures needed to drive the adoption of e-commerce, Dr Subho Ray, president, IAMAI says, "Inadequate infrastructure has prevented the e-commerce category to realise its full potential in India. Indian e-commerce players haven't been able to address the concerns of the consumers either."

Ray further adds that the focus should be firmly on introducing innovative services and delivery models and set-up high standards of safety and quality of services.

The report further highlights that the overall potential for e-commerce will increase from 146 million households in 2009-10, to 229 million households in 2024-25. It further says that the core potential for consumer e-commerce in India will increase from 71.4 million, to 141.8 million households. Core potential includes all households in the high-income category, and those in the medium-income category which have attained graduate or secondary level of education, and at the same time, engaged in more productive occupations.

Highlighting the need for an integrated effort from the industry and government to come up with achievable solutions to bridge the gap between the estimated potential and the current consumer participation in e-commerce, Ray adds, "There has been a lot of improvement of late, be it the introduction of 3G services, or the government's efforts to improve financial inclusion, as well as achieve greater broadband connectivity, digital education, and training. However, a lot more will need to be done, to realise the full potential of e-commerce in India."

Have news to share? Write to us atnewsteam@afaqs.com