India's Ecommerce Market Size Likely To Expand To $111 Bn By 2024: Report
The Indian ecommerce industry witnessed new peaks in 2022 across key business indicators including market penetration, customer awareness, mobile and data adoption. It also witnessed omnichannel sales approach reaching mass market customers and business models evolving with the adoption of B2B2C, video commerce, social commerce, quick commerce and D2C, amongst others.
The India e-commerce market size is estimated to be USD 75 billion in 2022 and has the potential to expand to USD 111 billion by 2024 and USD 200 billion by 2026, with a compound annual rate growth (CAGR) of 20 to 22 per cent, as per a data released by InGovern Research Services.
For many years now, e-commerce businesses focused on acquiring custo even at higher costs, however, 2023 will continue to witness consolidation on spends, increased focus on profitability, innovation in marketing and customer experience.
The report stated that India’s social commerce gross merchandise value (GMmersV) is expected to reach USD 20 billion by 2026, with a potential reach of USD 70 billion by 2030.
It said that the Indian e-commerce industry has been driven by increasing mobile phone adoption.
Sourjyendu Medda, Founder and Co-CEO, DealShare while sharing his viewpoint on how 2023 will pan out for the e-commerce industry said, "With global phenomena such as recession and funding winter making their presence felt in India, businesses will have to be more cognisant in adopting sustainable growth practices. For organisations targeting customers under 50K monthly income, understanding the sales cycle of the customer is very critical."
The coming year will see innovation in payment solutions for the mass market customers which will act as a great enabler for the growth of the e-commerce sector. DealShare's Medda further explained three basic principles.
This large cohort seeks the satisfaction of three basic principles, a simpler interface, good quality products and a sharper selection. Therefore, what works for a metro target group (TG) doesn’t work for them. Mode of payment is still a big challenge for this TG as the majority are still dependent on cash on delivery mechanisms.
As of 31 October 2022, there are 1,143 million mobile connections with 625 million urban and 518 million rural connections.
Amazon and Flipkart account for more than 60 per cent of the Indian e-commerce market.
Amazon India has over 10 lakh sellers on its e-commerce platform. Amazon started in India in 2013 with 100 sellers and has grown to be the preferred online destination for sellers across India.
"For long a duopoly, there is now increasing competition from new entrants like Meesho, Nykaa, etc and Indian giants like the Tata group and Reliance group who are slowly increasing their presence in e-commerce," it said.
Notably, the Indian e-commerce industry is controlled by stringent regulatory measures to prevent monopolistic and anti-competitive behaviour and control unfair trade practices.
"The online retail market in India is estimated to be 25 per cent of the total organized retail market and is expected to reach 37 per cent by 2030," as per the data.
