This Diwali, Online Shopping May Cross Rs 10,000 Crore: Survey

Online shopping in India is set for a big Diwali boost. A survey by industry body Assocham estimates that the total value of online shopping is likely to jump 350 per cent jump to over Rs 10,000 crore during this Diwali festive season, driven by huge price discounts by e-tailers and better accessibility of Internet, particularly through smartphones.

The growing popularity of online shopping however could result in 50-55% lower footfalls in shopping malls this festive season, said the survey titled 'Indian Online Retail Sales Surge in Festive Season'.

The survey was conducted in 10 cities - Delhi-NCR, Mumbai, Ahmedabad, Chennai, Kolkata, Hyderabad, Chennai, Bangalore, Chandigarh and Dehradun. According to Assocham estimates, Delhi-NCR (49.5 per cent) has recorded the highest decline in footfalls at city malls, followed by Ahmedabad (48.2 per cent), Chennai (46 per cent), Mumbai (42 per cent) and Hyderabad (39 per cent).

"Apart from convenience, rising fuel prices, security concerns, online discounts and abundance of choices are keeping the consumers indoors." said Assocham secretary general Mr D S Rawat.

There has been nearly a five-fold increase in revenue generated through e-commerce as compared to last year, as branded apparels, accessories, jewellery, gifts and footwears are available at cheaper rates and are delivered at the doorstep within 2-3 days, the report said.

Online retailers have launched many promotional schemes to lure shoppers during the festive season. Last week Flipkart had launched 'Big Billion Day' sale, in which it offered huge discounts on consumer electronics goods and other merchandise products. Although there were customer complaints of technical glitches, the e-tailer claimed it sold products worth $100 million (over Rs 600 crore) within 10 hours on the sale day. Snapdeal and Amazon have also introduced promotional schemes.