Mumbai, Feb 24: India’s e‑commerce market, currently at $120–140 billion, is projected to reach $280–300 billion by 2030, even as it remains 7–8 per cent of total consumer spending, a report said on Tuesday.
The report from Boston Consulting Group said that even amidst rapid growth of e-commerce offline retail remains resilient, having grown at an annual rate of 13-14 per cent over the past four years.
Market is entering a phase of coexistence between online and offline retail, with multi-channel becoming a norm for shoppers and five of 10 offline shoppers using online channels to research purchases, the report said.
India currently has nearly 300 million online shoppers, projected to reach 440 million by 2030, with around 30 per cent of online shoppers from rural India, the report further said.
E‑commerce comprises e‑retail and e‑services, estimated at $75–85 billion and $45–55 billion respectively, and growth will be driven by e‑services with a forward CAGR of 20–22 per cent versus 16–18 per cent for e‑retail, the report added.
“Shoppers today move seamlessly between screens and stores, researching online, purchasing offline, and vice versa, based on convenience, trust, and need,” the report said based on a survey of over 12,000 consumers across geographies.
Nearly two-thirds of women shoppers say they feel safer shopping online, citing privacy, ease of access, and the ability to shop independently and at any time.
“India’s shoppers are becoming more diverse, with consumers using different formats depending on their needs and maturity. As the demographic mix of online shoppers becomes more democratic, platforms and brands must design simpler, safer, and more seamless experiences across touchpoints,” said Kanika Sanghi, Partner and Director, BCG.
Quick commerce has grown at over 100 per cent CAGR, making immediate and top-up shopping missions mainstream and boosting purchase frequency, while social and chat commerce, grew at 40-45 per cent CAGR.
“The time required for online brands to reach Rs 100 crore in annual revenue has fallen from around 11 years to around 7 years,” the report noted.
—IANS