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Forecast Period
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2025-2029
|
|
Market Size (2023)
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USD82 Billion
|
|
CAGR (2024-2029)
|
13.86%
|
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Fastest Growing Segment
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Electronics & Appliances
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Largest Market
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North India
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India Online Retail market is
expected to reach over USD250 billion during the forecast period, due to the
increasing usage of smart phone and convenience of purchasing daily essentials
& luxury products from any location, among others. Such factors are driving
market growth.
India Online Retail Market Scope
The purchasing and selling of
goods & services using online channels, mostly through the internet and
other media forms, is referred to as online retail market. It entails the
transactional activities carried out by retailers through online shopping
platforms, and marketplaces that facilitate the product exchange between
businesses and consumers.
To present their product
options, attract customers, and enable smooth transactions, online retailers
use a variety of channels, including websites, mobile apps, and social media
platforms. The market provides an extensive range of products in numerous
categories, including electronics, clothing, cosmetics, household goods,
groceries, and more.
India Online Retail Market
Overview
The growing popularity of India
online retail market is fueled by various factors including rising internet
use, smartphone usage, convenience, a wide variety of products, competitive
pricing, and social media influence.
Indian e-commerce industry has
seen a significant growth in the past few years, which has resulted in the
emergence of a huge retail segment. The development of technological
advancement such as augmented reality (AR), virtual reality (VR), the
Metaverse, and experiential retail, are transforming customer interactions, and
has contributed significantly in the increase of the number of online
retailers. Additionally, benefits of online retail, such as discount offers,
easy access, range of availability of the product on a single platform, etc.
are expected to boost the market growth.
The online retail industry in
India is significantly influenced by the availability of a wide variety of
products such as electronics, apparel, cosmetics, household goods, groceries,
and other products available on e-commerce platform. The wide range of product
selection meets the needs and preferences of Indian consumers. Furthermore,
online retailers often collaborate with both local and international brands,
giving consumers access to a wide variety of national and international
products that may not be accessible in local physical stores.
Moreover, discounts, deals, and
attractive pricing strategies play a substantial role in promoting the India
online retail market. Discounts, flash sales, and promotional offers are
constantly offered by e-commerce platforms, attracting price-conscious
customers. These low rates, along with the convenience of home delivery, make
online shopping attractive to many Indian consumers. Furthermore, the
availability of numerous payment methods, such as cash-on-delivery digital
wallets, contributes to the ease and accessibility of purchasing goods online.
India Online Retail Market
Drivers
The growth of the online retail
sector is expected to be supported by increasing usage of smartphones and
internet penetration, along with rising internet users for making online
purchases across the country. India has a population of more than 1.3 billion,
and as of 2022, India has 692 million total internet active users, including 341
million from urban and 351 million from rural Indian, according to the Internet
and Mobile Association of India. More and more people are able to access the
internet and engage in online shopping because of the widespread availability
of affordable mobile phones and data plans. For instance, according to RAI
(Retailers Association of India), India’s online retail market contribution to
the overall retail market in India, is estimated to be 10.7 percent by 2024,
when compared to 4.7 per cent in 2019.
However, the convenience and
accessibility provided by e-commerce platforms is another significant driver of
the Indian online retail industry. Online retailers allow customers to browse
and purchase things from the comfort of their own homes. The purchasing process
has been made simpler by e-commerce platforms by providing a large selection of
products, alluring discounts, and safe payment methods. For instance, in 2022,
according to the Internet and Mobile Association of India (IAMAI), around 346
million Indian consumers are engaged in online transaction including digital
payments, and e-commerce. Furthermore, the availability of quick service
providers has assured timely delivery to some of the remote locations, allowing
online retailers to expand their reach.
Additionally, the Indian
government's focus on digitalization, as well as programmes like "Digital
India" and “Start-up India," contributed to an encouraging
environment for online retailers. Furthermore, regulatory changes and the
implementation of the Goods and Services Tax (GST) have streamlined the
taxation structure, making it easier for online retailers to operate across
states. As a result, government initiatives and policy reforms are the
significant driving factors for fostering the growth of the India online retail
market.