ECOMMERCE SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Ecommerce Industry in India
Summary/Snapshot
Ecommerce Industry
- India boasts the world’s largest higher education system, as well as the second-largest student population. In 2018-19, India had 37.4 million students enrolled in higher education.
- After the United States, India is the second-largest market for e-learning. By 2031 this sector will reach US$ 30 billion.
- By FY25, India’s education market is anticipated to be worth $225 billion.
- In the QS Graduate Employability Rankings 2022, which were issued on September 23, 2021, 12 Indian schools, including the Indian Institute of Science (IISc) in Bengaluru and six Indian Institutes of Technology (IITs), were among the top 500 universities.
- Each institution had 724 students in 2017-19. Every institute is expected to have 1,400 students by 2030.
- According to Times Higher Education’s World University Rankings 2020, India has 56 of the world’s top universities.
- As E-commerce and Edtech become more widely accepted, Indian consumers will have a digital economy of US$ 800 billion by 2030, up from around US$ 85-90 billion in 2020.
- A new strategy that attempts to provide a framework for enabling the E-commerce sector to expand holistically while also supporting other initiatives like Make in India and Digital India.
- In the final quarter of 2020, India’s E-commerce order volume rose by 36%, with the personal care, beauty, and wellness (PCB&W) category benefiting the most.
- In the marketplace model of E-commerce, 100 percent FDI through the automatic route is authorized under the new guidelines on FDI in E-commerce.
Growth Drivers
- High internet penetration, falling internet prices, an increase in the number of smartphones, product localization.
- E-Commerce provides benefits like 24/7 shopping, price comparison, time savings from physical store visits, and a greater selection of items.
- Other considerations, such as avoiding crowds, checkout queues, and the ability to purchase items without a physical barrier.
Sub industries
- Building Equipment
- Glass & glazing products
- Highways, Street & Bridge Construction
- Mechanical, Electrical & Plumbing equipment
- Residential remodelers
- Structural steel & pre-cast steel contractors
- Roofing & Flooring products
- Engineered wood & equipment
Opportunities
- The Indian online grocery market is estimated to reach US$ 18.2 billion in 2024 from the US $1.9 billion in 2019.
- The Indian e-retail market is expected to reach nearly 300 – 350 million shoppers over the next five years.
- Increasing popularity in Tier-1 and Tier-2 cities with a target audience of more than 200 million.
Challenges
- The top three issues affecting e-commerce enterprises are cybersecurity, competition, and order fulfillment.
- E-commerce sites have a conversion rate of less than 3%, bringing relevant visitors to your site is critical.
- E-commerce has grown so rapidly, there is now more stiff competition than ever before.
How we can help you:
– Product-Pricing analysis
– Strategies for – product/service localization
– Market research to sell effectively
Key Investment Opportunities
- India’s online shopper base to be the 2nd largest globally by 2030, with nearly 500-600 mn shoppers.
- The penetration of retail is expected to be 10.7% by 2024, compared to 4.7% in 2019.
- Over Calendar Year 2020-2030, tier 2+ cities will contribute 88% of new online shoppers and $150 bn in cumulative incremental online retail Gross Merchandise Value.
Recent Developments
- India’s eCommerce sector received US$ 15 billion of PE/VC investments in 2021 which is a 5.4 times increase year on year. This is the highest investment value received by any sector ever in India.
- Technology-enabled innovations like digital payments, hyper-local logistics, analytics-driven customer engagement and digital advertisements will likely support the growth in the sector.
- India is also planning to introduce Open Network for Digital Commerce (ONDC). ONDC will enable e-commerce platforms to synchronize search results on all the e-commerce platforms and display products and services from every platform.
- Over the next five years, the Indian e-retail industry is projected to exceed ~300-350 million shoppers, propelling the online Gross Merchandise Value (GMV) to US$ 100-120 billion by 2025.
Key Players in India
National
- Flipkart
- Paytm
- Myntra
- Yepme
- ShopClues
- IndiaMART
- Nykaa
- Alibaba
International
- Ebay
- Amazon
- The Home Depot
- JD.com
- PayPal
- Walmart
Map Clusters
We have completed over 8,000 projects worldwide & 1500 projects in India in nearly every business segment.
WINE & SPIRITS / FOOD & BEVERAGES / AGRIBUSINESS / ENERGY & RESOURCES / TRANSPORTATION / INDUSTRY / TECHNOLOGY / LIFE SCIENCES & HEALTH / SERVICES / CONSUMER & LUXURY GOODS / PUBLIC & PRIVATE INSTITUTIONS
/ Ready to start a conversation?
Write to us at info@maiervidorno.com, or
Fill the form below and we will get back to you shortly.