BENGALURU: Despite the regulatory environment in India getting stricter, India’s e-commerce industry is estimated to clock$ 55 billion in sales during 2021 with the addition of 40 million new online shoppers. The number of online shoppers for CY2021 is pegged at 190 million compared to 150 million last year, Mrigank, Gutgutia, Director, Consumer Internet at business consultancy firm, Redseer said during its flagship event Ground2.0 on Wednesday.
The country’s online shoppers base is likely to jump to 300 million in next five years with 90% of the consumers from tier II cities and beyond, he added. Last year, during the festival period alone, e-commerce giants, Amazon, Flipkart and various vertical players clocked nearly $9 billion sales, despite the pandemic onslaught, as per various estimates.
The booming digital economy in India which has invited the attention of global leaders is expected to touch $800 billion market value by 2030, contributing to 25% of the country’s GDP, as per a report released by the Redseer based on quarterly consumer sentiment surveys. The digital economy includes 60% of travel, 40% of non grocery retail, 30% of education, 25% of food and beverages services and 6% of Pharma/Grocery going through digital channels by CY30, the report stated.
Convenience has turned out to be the focus which is driving this shift with 50% of the consumers who participated in the survey now willing to shift to online channels compared to traditional retail for shopping. As per the Redseer report, India is set to become the third largest online retail market by CY30 after the US and China with an annual Gross Merchandise value (GMV) of nearly $350 billion .
“Over the last one decade, entrepreneurs have dedicated themselves to solve for the specific needs and pain areas of Indian consumers. Today, 50% + customers say they use onlineservices because of convenience. Few years back almost 70% + used to say the key reason is discounting but with the hit of Covid, digital services have undoubtedly served the customers very well, which is evident in high customer satisfaction and customers willingness to keep using the digital as a key channel to fulfill their needs. The next wave of entrepreneurs will create innovations which will make the Indian model successful globally ,” “Anil Kumar, founder and CEO of RedSeer, said.
Notably, India’s mom and pop or kirana stores, which are the backbone of the retail industry has leveraged the digital explosion during the pandemic and are likely to achieve $1.5 trillion by CY2030, as per the report.
India’s booming digital economy
- 300 million online shoppers by 2025
- The new age logistics players are expected to deliver 2.5 billion D2C shipments by 2030.
- Online used car transaction penetration to grow ~ 9 xs in the next ~10 years.
- For digital payments 45 million QR codes will be adopted by 2030
- Merchants adopting digital transactions will see a 15x growth over next decade