So much so that today it has started to threaten traditional physical retail. Spotting the danger, many brick-and-mortar retailers have begun to establish or strengthen their online presence, which by leveraging the strengths of physical reach and presence in multiple locations, will be able to build successful and, importantly, complementary business models – simply as happened in the United States. The online retail sector in India has grown at a rapid pace over the last 5 years, growing from around Rs 15 billion in revenue in 2007-2008 to Rs 139 billion in 2012-2013, turning into an annual growth rate compound (CAGR ) of more than 56%. The 9-fold growth occurred thanks to increasing Internet penetration and changing lifestyles, and was driven primarily by books, electronics and clothing. The resilient trend is expected to last in the medium term and the market is estimated to grow at a healthy 50-55 percent CAGR to Rs 504 billion by 2015-16. The entry of new operators in specialized segments such as food, jewelery and furniture, together with large investments by existing operators in the vertical sectors of clothing and electronics, will be the