Indian digital classified industry could reach Rs 7900 crore by 2020: Google KPMG report
Between FY 2011 and FY 2015, digital classifieds grew at a CAGR of 29.5 percent with revenues at Rs 2900 crore at the end of FY 2015. The industry is expected to grow at an expected 22 percent taking the industry to reach Rs 7700-7900 crore by FY 2020. The internet penetration in the country, rise in disposable income, increase of smartphones, urbanisation and a younger population could be the essential growth drivers.
Between FY2011 and FY2015, recruitments and matrimony had major shares of the pie while both of them lost some momentum by the end of FY2015.
Currently, the automobile, real estate and services sector are still nascent and fragmented vertical markets. While the B2C and C2C segments have seen lot of major players coming forward and increase competition and price wars.
The next phase of growth is expected to be boosted by the nascent verticals – E-service, Real Estate and automobiles which are likely to exhibit growth of 50 percent, 33 percent, 36 percent respectively. By FY 2020 E-services will contribute Rs 440 crore, Real estate Rs 900 crore, and automotive Rs 730 crore.
Currently, there are about 350 million internet users today and that is projected to grow to 659 million users by 2020. While the smartphone users are projected to grow to 500 million rising up from the current 220 million users. This is seen as one of the major factors to the growth of digital classifieds.
The pre-owned car market is estimated to grow at 15 percent CAGR to be among the top 5 global automotive markets by 2020. The new passenger car market is likely to touch 2.64 million units and this could play an important role in determining the growth of online classified automobile portals in the next few years.
Digital transactions have grown at 50 percent in FY2015, while the digital payments user base is expected to grow to 300 million by 2020. M-wallets have witnessed 747 million transactions in FY 2015 compared to 390 million by mobile banking. According to the report Quikr has spent 15-30 percent more on digital.
In the automotive sector, advertisements are the main source of income driven by OEMs and other ecosystem members. 65 percent of the Indian consumers use internet to research before purchasing a car.
When compared to other markets like China, UK and US, India has a comparatively matured vertical. Matrimony and recruitment have managed to gain specialisation and monetise portals more s successfully as opposed to horizontal counterparts. While unlocking the potential of a large population like India’s and bringing them online seems to be a priority for players across all sectors and is complimented by ecosystem initiatives.
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