The online retail market in India is slated to reach US$ 350 billion by 2030 from the current US$ 45-50 billion.
And in terms of post-Covid revenue growth, Indian e-commerce would become the third-largest market, eclipsing the more mature markets such as the UK and South Korea over the next decade.
The findings are a part of a report released by management consulting firm RedSeer Consulting.
“What it really means is that a lot of this growth is coming from the significant expansion of the user funnel. From about 150 million shoppers in CY20, we expect it to reach about 500-600 million shoppers. So that is sort of secondary to China in terms of the overall volume of the shopper base. And that is the massive expansion of the funnel which is going to lead to many more opportunities. We expect tier-II cities to be the engine of e-commerce’s rapid growth over the next decade,” said Abhishek Gupta, Engagement Manager, RedSeer Consulting.
Over the last five years, innovation and spending were driven more by urban people and rich cohorts residing in metropolitan cities. Now, the share of spending in tier-II cities would increase significantly and open up new business opportunities.
Gupta said India was now in the most exciting groundwork phase to create a fertile ground for a digital economy. Speaking about this in the context of smartphones, he said the next wave of growth would see more affordable smartphones reaching a wider set of unpenetrated audiences.
Smartphone shipments in the country grew 82 percent YoY to reach over 33 million units in Q2 2021, according to the latest research from Counterpoint’s Market Monitor service.
Gupta added that the growth in smartphone shipments was over 42 percent now when compared with 2015-2019. Globally, this growth has started to flatten out. India currently has the youngest population cohort across all the major economies.