Major online shopping sites Fabmall, Rediff, Indiatimes and Sify report that during 2005-06, Indian consumers have spent Rs 1,180 crore, more than double the Rs 570 crore netted during 2004-05. The Internet and Mobile Association of India (IAMAI), which collated this data, says that over the past two years, online purchases have grown nearly four-fold from 200,000 (in 2002-03) to 790,000 in 2005-06.
But according to the latest figures from Internet & Online Association of India (IOAI), 40 per cent of online shoppers said they bought electronic gadgets online. “The perception that electronic items need to be ‘touched’ before buying has changed. Whether you buy a microwave at Fabmall or at a brick-and-mortar shop makes no difference, unless you get an electrician to test the oven,” says K. Vaitheswaran, CEO, Fabmall.
Arun Natarajan is the Founder of Venture Intelligence, which tracks private equity and venture capital in India and Indian-founded companies worldwide. View sample issues of Venture Intelligence India newsletters and reports.