E-commerce in India

The e-commerce industry in India has seen an insane growth in the last few years, partly due to the pandemic and the proliferation of smartphones in the country, which provide users with access to the Internet.

Another factor driving the growth is the increase in urban households, which are embracing the convenience of online shopping in their busy lives. In 2021, 289 million people in India purchased goods and services online.

India is therefore one of the most popular online retail destinations in the world. Major international players like Amazon, Walmart and Apple have promised to invest billions in the Indian market by 2020. In addition, government initiatives such as Digital India, Skill India, Start-up India and Make in India are contributing to the growth of the e-commerce sector.

The Indian e-commerce sector is proving to be a source of innovative business models and technological solutions. Easy payment options, fast deliveries and simple returns are driving Indian customers away from the malls and towards online shops.

Market statistics on the e-commerce sector in India

  • India is the fastest growing e-commerce market in the world. By 2024 it will reach a value of 111 billion dollars and by 2026 200 billion dollars.

  • In India, online retail represents 25% of the total retail market and is expected to increase to 37% by 2030.

  • The online grocery segment in India is expected to reach $28 billion by 2024, up from $2 billion in 2019.

E-commerce India

  • India has the third largest group of online consumers in the world, 140 million; only China and the US have more.

  • In the last quarter of 2020, the number of orders in Indian E-commerce increased by 36%, with the personal care, beauty and wellness (PCB&W) category benefiting the most.

COVID-19 Impact

Online shopping, as a result of stringent lockdowns and 2-metre distance rules due to the outbreak of the pandemic, has become prevalent in India at a rapid pace. The Indian e-commerce industry will grow by about 84% to a value of USD 111 billion by 2024. The big cities in particular are contributing to this growth, accounting for about 90% of all online purchases.

Growth drivers of Indian
e-commerce sector

  • The number of internet users in India has increased from 4% of the population in 2017 to 45% in 2021. That is over 1.37 billion people.

  • The number of Internet users will continue to rise due to falling prices and an increase in the number of smartphones.

  • Many Indians, inside and outside the big cities, have discovered the convenience of online shopping during the pandemic, which has caused a lasting change in their buying behaviour.

  • Price-conscious Indian consumers see the benefits of e-commerce such as 24/7 shopping, easier price comparison and a wider choice of items.

  • It is becoming easier for online retailers to deliver products to remote locations. This is due to the large government investment this year of USD 780 billion in the country's infrastructure.

The major players in the e-commerce market in India

National e-commerce players in India

  • Flipkart

  • Paytm

  • Myntra

  • Yepme

  • ShopClues

  • IndiaMARTNykaa

  • Limeroad

International e-commerce players in India

  • Ebay

  • Amazon

  • Alibaba

  • Paypal

  • Rakuten

  • Walmart

Interesting investment opportunities

  • India will be the second largest online consumer market in the world by 2030, with nearly 500 to 600 million shoppers.

  • Between 2020 and 2030, major cities will generate 88% of new online shoppers and contribute USD 150 billion to the Gross Merchandise Volume of the online retail sector.

  • The government allows e-commerce companies that are 100% owned by Foreign Direct Investment.

  • Biggest subsectors: Online Shopping, Online Pharmacy and Social Commerce.

Do you have a specific question about the opportunities for your company in the Indian e-commerce market?

Read our articles on this sector here

 

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