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India's digital classifieds market to hit $1.2 bn by 2020: Google-KPMG report

Real estate and e-services to increase by 4x and 7x, respectively, while online job searches expected to double

Shivani Shinde  |  Pune 

ShopClues goes all out on digital

The Indian industry is projected to grow three times to $1.2 billion by 2020, a new report by and projects. Highlighting the growth opportunity, and on Wednesday released the ‘in India 2020’ report, which says the next phase of growth of such will be driven by the rapid growth of e-services, and automobiles. However, horizontal classifieds will still continue to lead with about 30% market share of total in 2020. search trends reveal that local searches across these categories have grown fourfold in the last four years, led by non-such as Pune, Ahmedabad, Chandigarh, Kochi, Coimbatore, Indore and Jaipur. and are expected to increase by 4x and 7x, respectively, by 2020. Within the classifieds vertical, dining, auto rentals, relocation services and home services like beauty services, repair, tutoring, personal trainers are the most popular. The jobs search market is set to double by 2020 with 63% consumers accessing e-classifieds.

Bengaluru, Mumbai, NCR and Hyderabad are the top ranked cities for job searches and with ‘Sarkari Naukri’ (government job) as one of the top searched Indic terms. The report further highlights that the digitally savvy consumer is happy to pay for value-added services. For instance, 59% of used goods buyers are willing to pay for quality verification of goods or home delivery; 43% of job portal users are willing to pay for auto application for jobs and 40% of consumers searching for are ready to invest more for legal verification and property check. “The ecosystem is ripe for the emergence of Spurred by the smartphone penetration, users are expected to grow to a whopping 650 million by 2020; and with every second consumer willing to pay for value added services, the digital classified segment is expected to touch $1.2 billion by 2020,” said Nitin Bawankule, Industry Director, India. Talking about the challenges and growth opportunities for the industry Sreedhar Prasad, partner (e-commerce and start-ups), India, said: “As the digital classified segment undergoes a rapid transformation it is facing a few challenges like unverified listings and low customer loyalty. However, it is expected that there will be convergence of businesses since the end customer is the same, thus a high possibility of e-Tailing, EServices and coming together as a strong one stop value proposition in the coming years. This would further enhance revenue streams, monetizing possibilities and reduce overall cost of customer acquisition”

First Published: Wed, September 21 2016. 14:50 IST