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With increasing penetration of Internet in India, the acceptability of online shopping is expected to grow at a phenomenal pace. The Indian retail market is primarily dominated by food and grocery (~67 percent) followed by apparel and accessories (~8 percent), jewellery and watches (~8 percent) and others. India has witnessed a drastic shopping revolution in terms of retail formats, distribution channels and consumer buying behaviour. There has been an increase in purchasing power of consumers owing to the growth of middle class with higher share of disposable income, easy financial options, etc. The consumers today are more educated and well informed thus becoming more experimental and willing to try new products and new modes of purchases. E-retail is one of the fastest growing formats in Indian retail market owing to the convenient and personalized shopping experience. The Indian e-retail is estimate at US $16.3 billion in 2017 and is expected to grow at CAGR of 45 percent to reach US $49.5 billion by 2020. India is expected to become one of the world’s fastest growing e-tail markets, driven by robust investment in the sector and rapid increase in the number of internet users. Under Government initiatives like ‘Digital India’, Internet has penetrated to 400 million users, 48,000 gram panchayats are connected by optical fibres under Bharatnet program and 120.8 million have access to broadband. The increasing spectrum of Internet reach across geographies of India coupled with corporatization of apparel sector is paving way for emergence of e-commerce as a major retail channel in apparel category.
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