Consumer e-commerce market on rise: IAMAI

MUMBAI: The consumer e-commerce market is likely to reach Rs. 9,210 crore by the end of financial year 2007-08, said a survey conducted by the Internet and Mobile Association of India (IAMAI) and IMRB. The survey estimated the market size at Rs 7080 crore at the end of FY 06-07.

The online travel space leads the industry segments with an expected size of Rs 7,000 crore by the end of 07-08. The online classifieds segment would be around Rs. 820 crore by 07-08. eTailing is likely to be Rs 1,105 crore by 07-08. Digital downloads and paid content accounted for the rest.

The survey arrived at a consensual industry definition of consumer e-commerce. "Buying and selling of products and services on the Internet or on any other application that relies on the Internet. In other words, it comprises transactions for which Internet acts as a medium for contracting or making payment or for consuming the service/product by the end consumer, who is an individual."

"Consumer e-commerce is a major driver of the economy and we are happy that it has achieved a very decent size in India. It is perhaps the only sector which has operated under sometimes hostile and at all other times indifferent policy environment. It is the right time for policy makers to extend its support to this industry as it has done for other so called sunrise industries and create an environment where this industry feels inspired, secured free to innovate," said Dr. Subho Ray, president, IAMAI.