5.

4 Mobile E-commerce Market India

E-commerce has had a phenomenal growth and still growing in Indian market 1. The new
trend in e-commerce platform is the mobile e-commerce. Mobile e-commerce or Mcommerce is referred to the usage of e-commerce platform wirelessly. The increase in the
amount of usage of smartphones and tablets in India has been an important reason for the
increase in the m-commerce activity in Indian market. The current size of m-commerce
market in India is USD 2 billion. Increase in the market size of the m-commerce platform is
expected to cross USD 19 billion by 20192. Increase in the m-commerce activity is due to
reasons like 3G technology usage, cheap and availability of smartphones, increasing techsavvy populations, etc. India has increased number of mobile internet users which had
reached 160 billion mark as on March 2014. It is also forecasted that mobile commerce will
exceed more than 25% of the e-retailer traffic in the market3.
Over 91% of people browse internet through their mobile to know about products and
services and people purchasing products and services via their Smartphone. The sales of
Smartphone is increasing by 51% every quarter of an year Mobile e-commerce market is
expected to grow at the rate of 71.06% for the period 2012-16. The subscription for 3G and
4G networks have been increasing accompanied by the increasing usage of Smartphone and
this is a key reason for the e-commerce competitors are now aiming to establish their mcommerce platforms in the Indian e-retail market. Indian is estimated to have around 2
billion smartphone users by the end of 2015 4. Companies like Flipkart, Snapdeal, Myntra,
Amazon, etc., have entered the m-commerce platform already. Mobile payment gateways
have also increased the use of m-commerce in India.
The increase in mobile subscriptions is depicted in the chart below 5 (* indicates estimated
values):

1 https://www.pwc.in/en_IN/in/assets/pdfs/publications/2015/ecommerce-in-indiaaccelerating-growth.pdf
2http://www.bgr.in/news/indias-m-commerce-market-to-reach-19-billion-by-2019study/
3http://www.kartrocket.com/mcommerce-in-india/
4 http://dazeinfo.com/2014/01/23/smartphone-users-growth-mobile-internet-20142017/
5 http://www.ipragmatech.com/potential-mobile-commerce-india.html#.VXfY-s-qqko

Mobile subscriptions per 100 people in India

150
Mobile subscriptions per 100
people in India

100
50
0

The driving factors for the increasing m-commerce users are as follows6:

IA n cff f cro ae r sd tsa r i ub ci l ti tu y r e

FMT oa o us b tc ileha -n F ds r ities e nw s d ifalyt n d A p p s
6 http://yourstory.com/2015/02/indian-e-commerce-2016/