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Spire Research and Consulting

Online Revenue Sales Set the Cash Registers Ringing for India’s E-Tailers

Oct 29, 2014   16:59 IST 
New Delhi, Delhi, India

Key Highlights of the study:

  • 20%-50% of their sales coming via online channels


  • Over 54% of businesses have reported a growth of more than 20% since obtaining an online presence


  • Tier 2 and Tier 3 cities are poised to see faster adoption and greater share in revenues coming from online channels


  • Sample Size: PAN India & 300 Retailers



Spire Research and Consulting, a leading market research consultancy, today announced the launch of its quarterly White Paper, ‘India’s E-Tailing Industry –Seller’s Perspective’ 2014 at New Delhi. The report theme was based on the current trend of online shopping and its outcome to the sellers. As per the report, over 54% of businesses reported a growth of more than 20% since going online in revenue sales. The survey was conducted across 13 States on 300 retailers through one-on-one, online and telephonic communications. 


Japnit Singh, Senior Director, Singapore and India of Spire Research and Consulting commented on the launch by saying We are pleased to introduce this study on the e-tailing space, considering the country is one of the fastest growing markets for e-commerce globally. The research clearly shows that, sellers in India have a positive sentiment towards e-commerce with maximum traction seen in apparel and food businesses. This study indicates a growing trend towards adoption of online channels. Over 50% of businesses currently account for significant revenue share from online sales, with revenue shares set to rise significantly over the next five years.


Spire’s study revealed majority of businesses have accepted online platforms as an extension of their brand. Businesses in the apparel (82%) and food (80%) sectors seem to have an advantage by going online as compared to consumer electronics (72%). Moreover, consumer electronics seem to have a lower potential as consumers are more inclined to be involved in the purchasing process.


There is expected growth from other sectors as well which consist of baby products, books, home décor and jewelry. Spire also forecasts that by 2020, 45% of businesses will see their online share grow to between 20 – 50% of sales.


Some of the key obstructions faced by sellers/respondents in the etailing space were identified as:

  • Lack of robust payment mechanisms;


  • Cash On Delivery (COD) options were prone to risks as well as payment delays


  • Difficulties in logistics and order placements.



On the other hand, businesses were expected to gain sales revenue from traditional/offline channels with sellers following a dual strategy of combining online with offline sales. Furthermore, the report also revealed the e-tailing space would eventually be dominated by a few large capital heavy organizations given the need for nationwide logistics infrastructure and a currently limited consumer base. At the same time, Tier 2 and Tier 3 cities were expected to have a faster adoption rate with greater sales margins derived directly from online channels. Furthermore, these channels will follow integrated strategy combining both offline and online sales.


About Spire Research and Consulting:

It is a leading market research consultancy specializing in global emerging markets - the Asia-Pacific, Latin America, Middle East, Africa and Russia/CIS. Spire focuses on holistic research projects which integrate traditional customer research with knowledge of the broader business eco-system. Through its narrowly focused service portfolio, Spire Research and Consulting helps its clients with strategic decision-making for market growth and entry. Spire’s management team works through its eight country offices, international advisors and local associates in over 30 countries to bring to each project highest standards of research conceptualization, execution and delivery. The Spire Group has delivered over 1,500 market research and consulting projects for over 50 Global Fortune 1000 firms.


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For further information, please get in touch with:

Nidhi Singh



Monami Mitra,


Japnit Singh
Japnit Singh
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