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CORPORATES & MARKETS
Online shopping grows 117% this season
Posted online: Saturday, November 05, 2005 at 0234 hours IST
 
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NEW DELHI, MUMBAI, NOV 4:  Online sales in last three weeks in the run-up to Diwali & Eid recorded a whopping 117% jump to Rs 115 crore this festive season against Rs 53 crore last season, according to Internet & Mobile Association of India (IAMAI).

Of the 32 million Internet users in India about 4.15 lakh made purchases online clocking 8.1 lakh transactions (up 135%) in three weeks. The average transaction value was Rs 1,420.

These purchases account for more than 10% of total online sales in India, which are projected to rise from Rs 570 crore in 2004 to Rs 1,180 crores in 2005.

All websites offered 24-hour express delivery for last minute shoppers.

Preeti Desai, president, IAMAI said: "Each festival season, Indians leave their shopping for the last minute. In the two weeks prior to Diwali, we recorded 61% of Rs 115 crore sales as against just 54% last year."

God's Plenty
Of the 32 million Internet users in India about 4.15 lakh made purchases online clocking 8.1 lakh transactions
The average transaction value was Rs 1,420
All websites offered 24-hour express delivery for last minute shoppers
Digital cameras, mobile phones, DVD players, microwave ovens, apparel, jewellery and watches topped the shopping lists
Digital cameras, mobile phones, DVD players, microwave ovens, apparel, jewellery and watches topped the festival shopping lists. These were followed by mithai, chocolates, dry fruit and flower hampers. Crackers and educational toys also did well this Diwali.

The Diwali shopping ranged from as little at Re 1 to as high as Rs 1.4 lakh, from more than 3,60,000 products. While retailers in Delhi were left bleeding due to serial blasts with sales down 70%-80%, online shops made a killing.

Dhanteras & Bhai Dooj festivals on 30th October & 3rd November, respectively, saw a lift in silver and gold coins as well as jewellery. The most active online shopping days were typically 5 days before Diwali & Eid.

This Diwali, shoppers spent more time in searching and comparing products. Maximum shopping orders were placed between 6pm to 10pm with most consumers transacted from office, home and cybercafe. India's online shopping industry is projected to rise to Rs 2,300 crore on the back of projected increase in Internet users to 100 million by 2006.

The growth figures clearly show that online shopping is coming of age and consumers are keen to shop on the net. Effective customer communication on products along with reduced shipping costs and timely delivery has helped online marketers to seize a slice of the Rs 1,180 crore sales.

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