E-Commerce in India, China Grows By More Than 50% in 2007

China’s online retail sales grew to $3.8 billion in 2007 from $2.4 billion in 2006. In India, B2C grew by 50 percent to $1.2 billion. These two countries, considered the bright future of the diamond jewelry industry, were among the fastest growing e-commerce markets globally.

According to eMarketer, B2C e-commerce sales, including travel, for the five major countries that it covers in the Asia-Pacific region, totaled an estimated $73.3 billion in 2007, up 24 percent over 2006. It forecasts that online sales will more than double by reaching $168.7 billion in 2011.

They found that market share is moving away from Japan and Korea, toward Australia, India and especially China. China’s share of regional B2C e-commerce will grow more than threefold from 4.1 percent in 2006 to 14.3 percent by 2011.

China’s B2C e-commerce market is on the fast track, with eMarketer expecting sales to grow at a 58.5 percent average annual rate from 2006 to 2011. India is also a high flyer with sales forecast to grow at a 48.8 percent annual rate.

In China and India, online travel spending drives e-commerce sales, and it accounts for a majority of total sales. Once consumers at large, not just techies and early adapters, feel comfortable making purchases online – the retail playing field changes sharply as the recent past has proven in the West.

Jewelry retailers that enter at this stage will gain an advantage already lost in the West where Amazon, eBay and Blue Nile dominate, largely for their good timing as well their service and smart user interfaces.