India Classified Market Outlook to 2020 - Rising Adoption of Online Channels and Growing Number of MSME's to Foster Growth” provides a comprehensive analysis of the online and offline classifieds in India. The report covers various aspects such as market size of India Classified Market, segmentation on the basis of online and offline modes. The report provides segment-wise information of India online B2B, B2C, C2C classifieds, online recruitment, online real estate, online matrimony and online automobile classified market. This report also offers prevalent trends and developments in industry, SWOT analysis and challenges in the industry. The report also covers the competitive landscape of the industry, in which the information related to the players operating in this industry has been comprehensively presented. Moreover, the report also offers information regarding the business models operating in the market along with the major macroeconomic indicators affecting the market. The report is useful for MSMEs, existing classified players, and new players venturing in the online classified market.

1. India Classified Market Report – 2020
Ken Research

2. • 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.

3. 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

4. • 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

5. 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.

6. 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.

7. • 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.

8. • 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

9. 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.

10. 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.

11. 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.

12. 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.

13. • 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.

14. 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.

15. • Source: https://www.kenresearch.com/technology-and-telecom/it-and-
ites/india-classified-market-research-report/12510-105.html
• Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
• Website : www.kenresearch.com

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