The $850 billion Indian retail market is the 4th largest in the world. It is also the most unorganized one. This market has been at the center of a transformation, led by the emergence of e-retail and Online shopaholics of India. The e-retail industry in India has seen an increase in the last five years.
The Indian e-retail market is primed to reach nearly 300 to 350 million shoppers over the next five years. This will propel the online Gross Merchandise Value (GMV) to $100 to 120 billion by 2025.
The next wave of shoppers will have various needs and will communicate differently than the current set. We see four key trends going forward: Voice and Vernacular, Visual and Video, Social Shopping, and the emergence of large digital ecosystems.
Covid-19 has caused an emphasis on e-commerce driven by consumers’ need for safety and convenience and even in India, online is gaining salience. A Bain & Company-PRICE survey of 3000 homes across earnings groups and geographies which was conducted between April and June, showed about 13% of customers buying online for the first time, and about 40% buying more online.
We expect India’s e-commerce growth story to be general—one that empowers the sellers and consumers both. For the consumers, it will provide timely access to a wide variety of products across all areas and income segments. For sellers, kiranas, artisans, traders, and home-entrepreneurs it will provide an unprecedented impetus.
E-retail has already democratized the shopping landscape. It has been done with access to more than 95% of India’s pin-codes and allowing Bharat’s small sellers while breaking go-to-market barriers for radicals and incumbent brands.
E-retail has benefitted millions of customers across India. Thereby it has exponentially increased merchandise choice, price transparency, and augmenting access and convenience. This was one of the benefits of COVID 19 that brought a huge impact on the Market.