A Study on E-Commerce Business Market Capitalization and Its Impact on Traditional Retail Sector: An Indian Perspective
Abstract
India has seen a notable increase in e-commerce activity since 2014.The market capitalization of the e-commerce industry reflects its overall valuation and significance. Indians' shopping habits have changed since the emergence of e-commerce, particularly in light of the internet's and online infrastructure's rapid expansion. By 2024, the Indian e-commerce sector is projected to be valued at approximately 123 billion US dollars. This amount is anticipated to increase to an incredible $300 billion USD by 2030. Despite gradual increase after year 2014 there were some years during which the e-commerce faced sudden decline and sudden burst in its market capitalization. This paper studied and analysed those reasons which contributed to such factors. There was a sharp decline in market capitalization in e-commerce business as low as -44 percent and a sudden burst as high as 123 percent. This sudden fluctuation shows variation in consumer behaviour like convenience, price sensitivity, variety and choice, mobile revolution, trust and reviews, social influence, payment innovations, etc. Despite several fluctuation faced by the e-commerce industry its influence on the traditional retail sector can’t be overlooked. The present paper has made an earnest attempt to investigate the variations in market capitalization and e-commerce impact on traditional retail sector.
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