Exciting times are certainly ahead for the exponentially growing e-commerce business in India. Indian e-commerce market was estimated at $55 Bn in the year of 2021.  While the Indian retail market is expected to reach $2 trillion by 2032, the ecommerce sector on its own is expected to grow at a CAGR of 23% and reach $350 Bn by the end of year 2030.

There are several factors which have helped fuel this growth. Some of these include:

• Digital India Campaign run by the Government of India
• Enhanced adoption of digital during Covid times
• Ever increasing internet penetration
• Availability and access to affordable smart phones

There are also some very interesting trends that can be observed out of this ecommerce growth story of India. Some of them are as follows:

• As per recently available data, there are about 830 Mn Internet users in India. This makes India the second largest country in terms of its user base
• 10 Mn internet users are added every month
• 348 Mn users are conducting online transactions
• 140 Mn users are shopping online
• 64% of the transactions are happening from tier-2 and other smaller towns
• About 64% of online traffic is coming from mobile
• Apparel and Consumer electronics are the top selling ecommerce categories
• Apparel and consumer electronics make up about 70% of the total ecommerce transaction value

As per data available on statista.com the top online stores of India in 2020 included web properties of ecommerce giants Amazon, Reliance Retail & Tata Digital

Emerging trends for future

Apart from the data that we have already have about the current growth story of Indian ecommerce market, there are also some very interesting trends that are emerging for the future. Some of them include:

• The growth story shall not be restricted to B2C ecommerce, but we shall also witness high growth in B2B ecommerce space
• D2C Ecommerce is going to witness wider acceptance; both amongst brands as well as customers
• Video commerce adoption shall be on a continuous high
• All brands shall need to ensure omnichannel experience for their customers
• It is going to be a fiercely competitive market; and hence players with effective digital strategies & execution will make themselves stand out of the crowd
• High quality talent acquisition & robust digital platform shall be key enablers of success

To conclude I would say that the ecommerce growth that we have seen till now is just a tip of the iceberg. Going forward we shall witness an exponential growth enabled by innovations, new channels, emerging new technologies, customer centric strategies and efficient supply chains.

That’s all that I had to share in this blog. I hope you found this an interesting read.

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