Online Spends – Where are people spending money?

Despite a lot of raised eyebrows from friends and industry contacts over the last few months i was delighted to note that i was bang on with respect to what i considered the major areas where money is being spent online.

As per the IAMAI report , the total quantum of online spends stood at approx 7000 crores out of which the maximum share was for Travel , followed by Retail. The difference between these position however is huge. Here’s the approx values for each :-

1. Travel : 76%

2. Retails (E tailing) : 12 %

3. Online Classifieds : 9%

4. Paid downloads : 3 %

The spend for 2007- 2008 is expected to touch 9000 crores, considering the percentages above it translates into a cool 6800 crores on travel. I am personally disappointed with the figures for E- Tailing but all they tend to substantiate reports indicating that many auction driven sites such as Ebay are struggling.

While i figure Travel will remain on the top , or atleast the top 1-3 , the sectors which should pick up are E-tailing. With the arrival of more innovative products such as Online Grocery shopping for example, the horizontal growth is substantial and i hope to see healthier figures here.

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One thought on “Online Spends – Where are people spending money?

  1. The figures for E-Tailing are indeed disappointing. I believe the main reason behind that is the fear of fraud in the mind of Indian people while using their credit cards online.

    Also in India there is no “branded” online payment system as yet which users can trust. China has “AliPay”(part of Alibaba) which has done wonders for e-commerce there.

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