New Delhi, Sept. 7 (ANI): Online shopping that has drastically improved its convenience for consumers over the past has led to troubles for the shopping malls. Offering convenience of delivery at door steps, e-commerce has been affected to the extent of 20-25 percent in vacancy rates and registered a 30 percent drop in rentals.
According to ASSOCHAM, the Indian trend is in line with the declining number in the retail space in over 200 shopping malls across the United States, UK and other countries facing 46 percent vacancy rates.
ASSOCHAM and PWC study suggests that the e-commerce industry in India, which is presently at USD 17 billion is likely to see a sharp annual growth rate (CAGR) of 35 per cent and more than USD 100-billion mark in its value over the next five years.
The e-commerce industry is estimated to see a 72 per cent increase in the average annual spending on online purchases like electronics, books, music, apparel, sporting, outdoor goods and others per individual in 2016 from the current level of 65 per cent.
Secretary General Mr D S Rawat of ASSOCHAM in a statement said, “It is true that the online shopping has shown handsome growth while the brick and mortar malls are witnessing slowdown. It looks that the growth in e-commerce looks impressive because of quite a low base and increasing penetration of internet.”
In India, sales in shopping malls have dipped by 25-30 per cent. It estimates around 65 million consumers in India to buy online in 2015, as against around 40 million in 2014.
Mobile technology is also having a huge impact on the retail. In a recent report, Amazon asserted that roughly 8-10% percent of their total sales are being generated by mobile devices.
As per reports, the construction of several malls have been delayed and withdrawn due to lack of response from retailers. (ANI)