Cross border spends by Indians is estimated to grow at 78.5% from 2015 to 2016, according to a Global Cross Border Consumer Research 2015 by PayPal and IPSOS.
Cross border shopping is the key trend of Indian shoppers with over 53 pc of Indians shopping clothing, footwear and accessories online across the border. The report also stated that by 2017 mobile spend (including smartphones and tablets) for all online shopping within India and cross border is predicted to reach Rs.3,18,600 crore from the current estimated Rs.1,26,500 crore in 2015.
Key drivers making online shoppers more likely to shop cross border include free shipping.
“The Indian e-commerce space is experiencing an exciting time where innovation is the key. Our research reveals that the advent of technology is slowly diminishing borders for online shopping. With the number of online shoppers set to grow exponentially, it will lead to increase in the numbers shoppers who shop from global retailers with online presence,” Vikram Narayan, Country Manager and Managing Director, PayPal India said.
Desktops account for the highest proportion (53%) of purchases made by cross border shoppers from websites in another country in the last 12 months, however the future belongs to mobile for cross border shopping: 41% of the purchases made by cross border shoppers from websites in another country in the last 12 months were made using a smartphone (30%) or tablet (11%), the report added.
Although cross border trade is forecasted to grow in India by 78.5% from 2015 to 2016, high customs duty and high delivery shipping costs could be a key deterrents.
Online spends on the rise
The research estimates overall online spends inclusive of cross border shopping to touch Rs.7,02,900 crore by 2017
Consumer electronics and entertainment are estimated to be the highest growth categories for online spends in 2016
Total online spend in the consumer electronics category is forecast to grow 48% by 2016 while the total online spend in groceries, food and alcohol category is forecast to grow by 43% in 2016.
Average spend on cross-border transactions by the estimated 3.8 million cross border shoppers was estimated to be ~Rs.1.42 lakh per cross-border shopper in 2015.
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