Image used for representational purpose only. (File Photo)
Image used for representational purpose only. (File Photo)

Online shopper base to touch 450 million by 2027 in India

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 festive sale.

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.

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