Companies

E-commerce poised for faster growth, says eBay

Our Bureau Hyderabad | Updated on March 18, 2011 Published on March 18, 2011

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Marketing professionals need to keep pace with the rapidly changing electronic commerce landscape in the country which is projected to grow by over 50 per cent during the year, up from Rs 32,000 crore during 2010, according to Mr Kashyap Vadapalli, Director, Category and Business Development, eBay India.

Speaking on the sidelines of a conference on marketing hosted by the Confederation of Indian Industry (CII), Mr Kashyap said the growth of electronic commerce will be at a much accelerated pace then ever before in India, if the last 36-month pattern is any indication. Of this, nearly 85 per cent of the total e-commerce is now travel-related.

However, there are clear signs to show that the non-travel-related business is poised for a much rapid growth. A big chunk of non-travel business is coming from electronic goods. But a significantly higher number of online visitors are getting comfortable with transactions online using their credit cards, he said.

“In the past year, we have had customers buying products in the jewellery and textiles category, which is actually a touch-and-feel experience range,” he said.

He said, “eBay has over 13,000 registered companies big and small who use its platform for sales. We expect this number to grow significantly in a couple of years.”

Amway India, part of the $9.2-billion US-based direct selling FMCG company, is close to finalising plans for a new manufacturing base in the country to meet its rapidly growing business, according to Mr Richard N. Holwill, Vice-President, Amway.

Speaking to reporters at the CII conference, Mr Holwill said, “Amway has grown rapidly in the past three years and closed last year with revenues of Rs 1,800 crore. We expect this to go up to about Rs 2,500 crore within two years.”

“To meet the growing demand, we are in the process of finalising plans for a second manufacturing base in India, which will also enable us to broaden the range of product offerings across four major categories of personal and home care, cosmetics and nutraceuticals, he said.

Mr Holwill wanted the Government to come up with guidelines for companies using an informal retail model to sell their products.

Published on March 18, 2011
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