E-commerce Takes The Front Stage2 min read
SALE! SALE!! SALE!!! Nowadays Wherever you go (digitally) all we can see are humungous discounted products. We all witness a continuing series of delivery boys lurking out of the apartment at all times.
The covid-19 pandemic has changed the way we all live, given the restricted movement the urge to shopping was shifted from physical to digital.
The pandemic was a watershed moment for India’s e-retail market, reportedly driving a 12-month acceleration in e-retail penetration to reach 4.6% in FY21, said the report.
As per the Bain & Company report ‘How India Shops Online 2021’, the Indian offline retail market shrunk 5% to $810 billion as the pandemic ravaged the country in the fiscal year 2021 compared to the previous financial year.
The Indian e-commerce market, on the other hand, witnessed a 25% growth in the same time frame.
The Indian e-commerce market grew about 45%-50% between June 2020 to March 2021, the 10 active months of FY21, the report notes.
As India’s digital economy grows, the number of online shoppers are expected to grow with it.
What do others have to say!
A report by Kearney highlights that about one in three internet users are expected to shop online actively by 2030.
As per the report, India is expected to have 1.1 billion internet users by then, compared to 700 million reported in 2020.
The report, published on August 17, also noted that the Indian retail market is expected to grow at a slower pace compared to the e-commerce sector.
While Kearney expects a 9% growth rate for offline retail to reach $1.4 trillion, Bain & Company has anticipated a 25%-30% growth rate for e-commerce to reach $120-140 billion by FY26.
The lifestyle retail for clothes, accessories and apparel is going to be the biggest segment for both online or offline retailers in this decade. It is expected to contribute about $249 billion to Indian retail.
A report published by Goldman Sachs in Nov 2020 – ‘The curve continues to steepen’ suggested that online grocery has seen an increase in adoption due to COVID-19.
The firm expects groceries to be the fastest-growing category within Indian internet retail, reaching $37 billion by FY25 which would translate into an online penetration of 6.6%.
Bain & Company said that the grocery market (online and offline) grew 80% in 2020 compared to 40% in the year before.
Disclaimer – This content is purely for informational purpose and in no way advice or a recommendation.
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