BENGALURU: The country’s online shopper base will increase to 400–450 million by 2027 and most of these shoppers are already in the digital funnel, said a new report by Bain & Company. Last year alone, 40-50 million new shoppers were added to the India e-retail market, which is nearly 30%–35% growth over the online shopper base in 2020. India has the third-largest shopper base globally, and it might surpass the US to have the second-largest shopper base in the next 1-2 years, the report said. There were 190 million online shoppers in 2021.
Flipkart, which recently concluded The Big Billion Days (TBBD), said it recorded over 1 billion customer visits during the festive season and 35 million app downloads in the run-up to the festive sale. Amazon and Meesho too recorded maximum sales from tier 2 cities and beyond.
The new report also stated that new shoppers largely belong to tier 3 or smaller cities and include Gen Z, as they will become a critical cohort in the future. They primarily purchase fashion as the first category online, and they typically start buying at entry price points. Meesho said the top-selling categories included fashion, home & kitchen, electronic accessories and beauty & personal care in its recently concluded festive sale.
For Meesho, nearly 60% of orders came from tier 4+ cities. Also, the country’s online seller base has grown 35% annually over the past year, with about 40% of new sellers coming from tier 2 or smaller cities. The report said the country’s e-retail market is estimated to increase to $150–$170 billion by 2027. This implies 25-30% annual growth and doubling of market penetration to 9-10% over the next five years.
It said tech-led innovation will take centre stage in the future of e-retail growth. Many e-commerce players are already utilising technology like augmented/virtual reality and AI-based product demos to deliver an upgraded customer experience to shoppers.