India’s online retail market to reach US $ 350 by 2030
India’s online retail market is expected to reach US $ 350 billion by 2030, compared to US $ 45-50 billion today.
And in terms of post-Covid revenue growth, Indian e-commerce would become the third-largest market, eclipsing more mature markets such as the UK and South Korea over the next decade.
The findings are part of a report published by management consulting firm RedSeer Consulting.
“What this really means is that a lot of this growth is coming from the significant expansion of the user funnel. From around 150 million buyers to CY20, we would expect it to reach around 500-600 million buyers. So it’s somewhat secondary to China in terms of the overall volume of the buyer base. And it’s the massive expansion of the funnel that’s going to lead to a lot more opportunities. We anticipate that Tier II cities will be the engine of rapid e-commerce growth over the next decade, ”said Abhishek Gupta, Engagement Manager, RedSeer Consulting.
Over the past five years, innovation and spending have been driven more by city dwellers and wealthy cohorts residing in metropolitan cities. Now the share of spending in Tier II cities would increase dramatically and open up new business opportunities.
Gupta said India is now in the most exciting phase of groundwork to create fertile ground for a digital economy. Speaking on this in the context of smartphones, he said the next wave of growth will see more affordable smartphones reaching a larger unpopulated audience.
Smartphone shipments in the country increased 82% year-on-year to more than 33 million units in the second quarter of 2021, according to the latest research from Counterpoint’s Market Monitor service.
Gupta added that the growth in smartphone shipments is now over 42% compared to 2015-2019. Globally, this growth has started to stabilize. India currently has the youngest population cohort of any major economy.