To attract customers to shop online, e-retailers and marketers offer discounts to the customers who spend the most. This is the reason why so many people visit websites like https://www.raise.com/coupons/adidas.
Advertisers are also constantly looking for ways to make their advertising more attractive.
And as the number of consumers using online products and services increase, more companies are competing with each other to offer them the best deals on products and services.
According to the report by the EY Global Forum, e-commerce is forecast to grow to $1.6 trillion by 2020, with the total value of transactions expected to increase to $1.8 trillion. While it is still very early in the life cycle of e-commerce, e-commerce is also the fastest growing sector, with a CAGR of 18.2%. The next biggest growth driver will be the service sector, which is forecast to grow by 10.1% and the personal care and household goods sector by 5.3%.
E-commerce is growing faster than consumer packaged goods (CPG)
Consumer packaged goods (CPG) such as food, household and personal care products, as well as electronic goods and apparel were the biggest growth drivers in FY13 and are the fastest-growing categories. Their share in GDP is increasing at a faster rate in the next few years, driven by the growth in consumption of household durables. In contrast, the sector which is growing the fastest, e-commerce, is largely driven by growth in the adoption of smartphones and other mobile devices in India. The number of mobile consumers is expected to grow at an annual CAGR of 28.3% between 2013-15 and 2020-21.
In terms of gross value added, the industry will experience the fastest CAGR of 6.8% between 2013-15 and 2020-21 as per a study by the Indian National Retail Association.
There is considerable scope for the industry to further grow in the coming years as India’s consumption of non-luxury goods and services is expected to grow at a CAGR of 12.9% from 2015-16 to 2020-21.