Indian B2C industry has grown from Rs 1,169 crore last year to touch Rs 1,759 crore in 2005-06, up by over 50 per cent. The sector has been estimated to touch Rs 9,259 crore by 2009, growing at CAGR of 51.27 per cent.
According to the e-Commerce Market Size Analysis Report, 2006 published by eStatsIndia, an Internet research and consultancy firm, e-travel, including the railways, airlines (domestic and international), no-frills airlines, hotels, e-tours and travels, constituted the biggest segment in the B2C sector in terms of billing figures at Rs 750 crore, compared to Rs 550 crore last year.
However, this segment might not grow at such a fast rate as it was being conceived, felt Vikram Bhardwaj, CEO, eStatsIndia. “With many online travel portals hitting the market, which are mostly funded by VCs, the margins and ultimately revenues of these companies may get affected, which may make the growth of this segment sluggish. However, the segment will grow at a CAGR of 46.88 per cent to touch Rs 3,760 crore by the end of 2009,” Bhardwaj added.
Broking, which includes online banking transactions, financials, and commissions earned by online arms of broking firms, has almost doubled from last year to touch Rs 500 crore this year.
Among the other segments of B2C e-commerce, retail billing figures have touched Rs 150 crore, jobs Rs 135 crore, matrimonial/dating Rs 40 crore, e-greetings Rs 12 crore. Online advertising revenue has touched Rs 162 crore, up from last year’s figure of Rs 150 crore.
One additional segment that has been added this year is domain booking and related services other than web hosting. This has contributed Rs 10 crore towards the B2C e-commerce industry in India.
On the B2B e-commerce market in India, the report says this industry has grown from Rs 1,636 crore in 2004-05 to Rs 2,406 crore in 2005-06. The report forecasts that the sector will grow at a CAGR of 52.63 per cent to touch Rs 13,550 crore by the end of 2009. e-procurement segment will grow faster than Net marketplace at a CAGR of 50.93 per cent to touch Rs 12,100 crore by the end of 2009.
The key assumptions made in the report include an Internet user base of 30.5 million by 2006, while PC will remain the primary Internet access device till the end of the forecast period. Mobile phones and other wireless devices will also have significant impact on the scenario, the report added.