India Classified Market Report – 2020 Ken Research

• How is the India Classifieds Market Positioned?During FY’2015, the size of India’s classifieds market was registered as INR ~ million, this

multiplied to reach INR ~ million in FY’2015. Increasing number of internet users in the country, along with innovative business models adopted by the companies have led to a strong and speedy growth of the classifieds market in India. Offline classifieds has been one of the major factors driving the revenue of Indian classifieds market, contributing a share of ~% in the overall market revenues of FY’2015. Additionally, rising internet penetration and easy access to internet through broadband and third generation (3G) technologies have helped in increasing the customer base for the online classifieds market in India. Further, rising income levels and standards of living have aided the growth of this sector and enabled the classifieds sector in India to change the way companies connect with customers.

Online classifieds market refers to posting advertisements about sale and purchase of products over the internet. These business transactions can be mainly classified into business-to-business (B2B), business-to-consumer (B2C) and consumer-to-consumer (C2C). The market for online classifieds in India registered revenue of INR ~ million in FY’2015, growing at a CAGR of ~% during the period FY’2010-FY’2015. In FY’2015, online B2C market accounted for the highest proportionate share in the overall revenues of the online classifieds market. The share of online B2C classifieds has been registered as ~% in FY’2015 as against ~% in FY’2010. Additionally, online recruitment portals accounted for the second largest share in the overall revenues of the market during FY’2015. The share of recruitment portals was registered as ~% in FY’2015

• How is India Online B2B Classifieds Market Positioned?During the initial years of inception, players focused on building a market by acting as a

connection between offline customers and offline MSMEs. Queries were collected from different customers through different means of communication including phone, fax and others which were forwarded to the MSMEs in the database without any fee. This helped in the development of a positive relationship with the MSMEs who had no access to the global marketplace. The online B2B classified market revenues have enlarged enormously during the period FY’2010-FY’2015, witnessing an astounding Compound Annual Growth Rate (CAGR) of ~%. Furthermore, the number of registered customers on B2B portals in India has progressed at a rapid pace, observing a CAGR of nearly ~% during FY’2010-FY’2015. The increasing penetration of internet and the growing awareness amongst entrepreneurs to list their business on online platforms was the major factor that contributed towards the soaring growth during the period

It has been observed that the share of paid members out of the total registered members has changed from ~% in FY’2010 to ~% in FY’2015. This has been due to the high growth rate in the number of total registered customers in comparison to the number of paid members on the B2B classified websites portals. The number of paid members on B2B classified platforms has enlarged from ~ thousand to nearly ~ thousand in FY’2015, perceiving a CAGR of ~% during this period. Entrepreneurs, particularly young individuals prefer listing their business online instead of classified magazines and newspapers. This is also leading to a swift transition towards the online medium. Cities such as Delhi/NCR, Bangalore, Mumbai, Chennai, Ahmedabad, and Pune have been witnessing the growth of new businesses. Apart from the Make in India campaign, the effective promotional strategies adopted by the players have benefitted the market and resulted in increase in the number of customers.

• What Are Major Sectors Driving India Online B2B Classifieds Market?It has been observed that the largest number of suppliers in India online B2B classified market

belonged to Delhi and Maharashtra. The share of both the states in the number of total suppliers was noted at ~% in the year FY’2015. Tamil Nadu and Gujarat contributed to significant share of `% and ~% respectively in the number of customers on B2B platforms. Gujarat is also amongst the most industrialized states with dominance across sectors such as textile, engineering, chemicals, petrochemicals, dairy and cement. Karnataka, Andhra Pradesh and West Bengal also contributed to ~% and ~% share in the number of suppliers during the year FY’2015.

It has been analyzed that during FY’2015 Industrial equipment & machinery and electronics & electrical goods occupied the largest share of ~% on the basis of total product listings. The share of construction material & civil engineering was noted at ~% and that of industrial and engineering products was registered at ~% during FY’2015 It has been observed that paid subscriptions were the most important source of revenue for B2B classifieds during the year FY’2015. Portals enable large scale as well as medium and small scale suppliers to list their products after paying a membership fee. Lead generation contributed to a moderate ~% of the revenue generated in the India online B2B classified segment in FY’2015. Out of the total customers listed on the B2B platforms, nearly ~% of the customers are registered as paid members. Additionally, out of the paid members, MSMEs have occupied a dominant share of nearly ~% as of FY’2015. On the other hand, large scale suppliers contributed to a mere ~% share in the number of paid registrations on the online B2B platforms during the year FY’2015. Furthermore, manufacturers have dominated the market, holding a share of ~% in terms of total customers registered on online B2B portals during FY’2015. On the other hand, traders which include retailers and wholesalers consisted of ~% of the total customers in India only B2B classified market during FY’2015.

• How Are Major Players Operating In India Online B2B Classifieds Market? The online B2B classified market in India is majorly dominated by a few large players, which have

managed to gain dominance over the market in a very short span of time. It has been observed that the top three players in the market namely, India MART, Trade India and Alibaba have collectively occupied ~% of the market, leaving very less scope for other smaller players. The largest player in the Indian online B2B classified market in FY’2015 was IndiaMART. The company leads the online consumer electronics market with a share of nearly ~% in the overall revenue of online B2B classified market. Trade India stood as the second largest player in the online B2B classified market in India, with a contribution of approximately ~% in FY’2015 Alibaba is a China-based company which has gained prominence in the Indian market over the past decade. The company’s share in the Indian online B2Bclassified market during FY’2015 was noted at ~%. Other players in the market including include B2Bclassifieds.in,timesoftrade.com,webdealindia.com and several others together generated approximately 12.5% towards the revenue of online consumer B2B classified market in FY’2015.

• What Are Future Prospects Of India Online B2B Classifieds Market?The growth of MSMEs in the country coupled with the rising use of internet amongst Indian masses has

been the major driver of this growth. The market for B2B classifieds is anticipated to perceive a reasonable growth in the near future owing to the high growth potential of MSMEs in the country. Make in India campaign will enable new age entrepreneurs to set up globally competitive business in the country. It is anticipated that the number of MSMEs in the country will grow at a notable ~% rate through FY’2020. Further, the number of registered customers on all B2B classified portals will be recorded at ~ thousand perceiving a growth rate of ~% in the forecast period. Paid customers who constitute a share of ~% in the total registered customers will reach ~% by FY’2020

• How Is India Online B2C Classifieds Market Positioned?The B2C classified industry has perceived an exponential growth in India. Traditionally, the market has

been dominated by offline mode in which classified advertisements were published in magazines, newspapers and other print media. The India B2C Classified market has progressed from INR ~ million in FY’2010 to INR ~ million in FY’2015, perceiving a CAGR of ~% over the period FY’2010-FY’2015. This growth has been a result of the swiftly expanding online mode of B2C classifieds which has brought MSMEs across the country on online platforms. The share of online mode in the B2C classified market was ~% in FY’2010 on the basis of revenue, which gradually inclined to ~% by the end of FY’2015

India online B2C Classified market has witnessed an impressive growth in the number of online listings during the period FY’2010-FY’2015. Additionally, players operating in the market have expanded their listing categories over time due to which they have been able to build a formidable database of SMEs.

• What Are Major Sectors Driving India Online B2C Classifieds Market?Out of all the mediums of search, Internet has contributed to a share of nearly ~% in FY’2015.

Mobile internet contributed to a share of around `% in the number of searches conducted during FY’2015. Voice and SMS based searches have contributed nearly ~% and ~% respectively during the year FY’2015. Voice based search services have been the most important part of B2C business over the past few years. It has been estimated that during FY’2015, online B2C market generated nearly ~% of their revenue from listings of businesses on the platform. Further, nearly ~% of the revenue generated in the industry during FY’2015 was sourced from advertising revenues. B2C platforms also enable SMB customers to place their advertisements on their platform to enhance visibility. Repeated advertisements improve brand recall and therefore prove to be advantageous in driving sales.

As of FY’2015, out of the total listings on the online platforms, nearly ~% were paid. Amongst the paid listings, nearly ~% of the listings were non premium while a mere ~% were premium. Most of the small businesses find it viable to pay for non-premium listings since they cost much less than premium listings The online B2C classified market can be segmented on the basis of tier I, tier II and tier III cities. Tier I cities including Delhi, Mumbai, Bangalore, Chennai, Kolkata and others have occupied the highest share in terms of total listings, paid listings as well as on the basis of revenue. It has been analyzed that on the basis of total listings, tier I cities contributed to a significant ~% of the share, while their share in the number of paid listings has been noted at ~% in FY’2015. It has been observed that businesses in tier II and tier III cities are still unaware and at the same time reluctant in listing their business online. Additionally, they do not prefer paying much for the listings. This is the reason behind only a ~% contribution from Tier II and tier III cities in the market revenue.

• Who Are Major Players In India Online B2C Classifieds MARKET?The competitive landscape of B2C classified portals, competing to expand their listings and

customer base in India has magnified during the last five years. The market has been majorly dominated by three major players which include Just Dial, Sulekha and Ask Me. Together these three players controlled ~% of the market during FY’2015. Other important players in the market include AskLaila, Click.in and several small players.

During the year FY’2015, JustDial contributed to nearly ~% of the revenue of India B2C market. Sulekha.com has been the second largest players in the market with a revenue share of ~% share. Askme has been expanding its network of businesses at the same time investing in marketing activities to grow its brand. The company has been able to generate a share of ~% in the online B2C classified market as of FY’2015.

• What Are Future Prospects For India Online B2C Classifieds MARKET?The revenue of this market is expected to reach a total value of INR ~ million in FY’2020 due to

growing penetration of online classified portals in tier II and tier III cities These factors will be enabled by a host of other factors and they will, in turn, help the market to prosper at a projected growth rate of about ~% during FY’2016-FY’2020. With more number of players in the market, competition will intensify further and companies will try to offer subscription packages at competitive prices so as to acquire customers. In the long run, almost all the transactions conducted in B2C classifieds market would be through online portals.

• How INDIA ONLINE C2C CLASSIFIEDS Market Is Performing?The online C2C classified market in India has been a comparatively new concept. There were not

too many takers for this market phenomenon back in 2009-10. OLX, a well-known name outside laid its footsteps in 2009 and needed to educate the potential customers before monetizing its idea.

Indians were still orthodox about selling their used goods and preferred to either hoard it. The India Online C2C market has grown at a formidable CAGR of ~% in the period FY’2010-FY’2015 FY’2012 and FY’2013 saw a marked increase in the growth of this segment in lieu of heavy marketing through TVCs. Also, by that time Quikr rose as a prominent player achieving a significant market share and put up a decent competition to OLX. The Online C2C Classifieds market can also be estimated on the basis of number of listings that are put up on the portals. Not all listings are authentic; however the companies are investing a lot on scrutinizing the posts and eliminating the bogus content.

• What Are Major Sector Driving India Online C2C Classifieds Market?The India Online C2C market can be classified on the basis of revenues generation from

advertisement and listings. Advertisements are still the main stay for the companies operating in this segment and accounted for almost ~% of the total revenue generated in FY’2015. With the influx of upgrades and new releases at a rapid pace, online classifieds have become consumers’ go-to platform for gadget purchase. The majority traffic comes from the people who possess a tendency to acquire the latest and upgraded wares and therefore sell their old models. Automobiles accounted for second major contribution in terms of total number of listings in India online C2C classifieds market.

• How Are Major Players Performing In India Online C2C Classifieds Market?The Classified C2C space in India is comparatively new. OLX after its set up in 2006, took three

years to gauge the market and went on to start its operation only in 2009. Sulekha and Quikr followed suit and began expanding at the starting of this decade. OLX had around ~% of the market share in terms of revenue in FY’2015. The primary reason was its late monetizing decision over promotional ads in lieu of building a substantial traffic count. Quikr, though had around ~ % of the market share, cannot by any means be positioned as the market leader because both the players are equally likely to overtake each other or maintain the equal share because of huge brand recall value and similar portfolio of services. However, currently Quikr has been widening its services towards specialized C2C verticals like Quikr Homes and Quikr Services. Another player, Click.in possessed a tiny market share of ~% whereas the others accounted for only ~% of the overall market share in FY’2015

• How Is The Future Of Online C2C Classifieds Positioned?The online C2C classified market is poised to grow at a considerable rate in the wake of evolving

consumer aspirations and acquisition habits. The rapid proliferation of mobile phone internet will make online classifieds cater to a larger customer base and at the same time offer convenient transactions.

It is estimated that used goods worth INR ~ million are lying idle in urban India only. The rural and semi-urban areas further add up to the figure. Additionally, the sale of used goods is expected to increase by five times in the next three to four years. This will only multiply the traffic on classifieds site and enhance the revenue stream as the companies start leveraging the market through monetization of their free services that they are providing currently On the other hand, it is estimated that sale of used products yield a incremental margin of 9-10% for the seller on these sites compared to what he would have received had he sold in the open market. The companies will try to leverage this customer motivation and try and make more revenues from promotional listings.

• How Is India Online Real Estate Market Positioned?The Indian real estate sector is one of the largest in the world and is also a major contributor to

the Gross Domestic Product (GDP) of the country. India has not only been successfully in attracting domestic but foreign real estate developers also. The rapid growth of nuclear families, rising urbanization along with the increase in household income of Indian masses has been the major drivers of growth of the market.

• Source: https://www.kenresearch.com/technology-and-telecom/it-and-ites/india-classified-market-research-report/12510-105.html

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