Trade Analytics

Indian Ecommerce Industry Analysis

Latest update: February, 2018

  • Propelled by rising smartphone penetration, the launch of 4G networks and increasing consumer wealth, the Indian e-commerce market is expected to grow to US$ 188 billion by 2025.
  • E-commerce is increasingly attracting customers from Tier 2 and 3 cities, where people have limited access to brands but have high aspirations.
  • With the increase in awareness about the benefits of online trading, there has been a significant rise in investment in E-commerce business. Hand in hand with offline trading, many established businesses, e.g. Shoppers Stop or Lifestyle, have setup online transaction channels.
  • Earlier food and grocery were never thought of as items for online trading. However, with the change of working habits, and consumers opting for adaptability and convenience, there are now innumerable small and large E-commerce companies selling provisions and food items like Grofers, BigBasket, etc.
  • Indian E-commerce industry is in a position to sustain itself as a viable business opportunity not only for established names but even for start-ups.

Source: PWC, Economic Times, Financial Express

  • The e-commerce retail market is estimated to be worth US$ 12 billion in gross merchandise value (GMV) terms as of 2016.
  • Electronics is currently the largest segment in e-commerce in India with a share of 47 per cent and is expected to grow at a CAGR of 43 per cent by 2020.
  • The apparel segment has the second highest share of 31 per cent in the e-commerce retail industry.
  • Currently, there are 1-1.2 million transactions per day in e-commerce retailing.

Note: CAGR - Compound Annual Growth Rate
Source: KPMG Report – E-commerce Retail Logistics India



Last Updated: February, 2018

The Indian e-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second largest e-commerce market in the world by 2034. India’s e-commerce industry is expected to grow from US$ 38.5 billion as of 2017 to US$ 200 billion by 2026. India’s internet economy is expected to double from US$125 billion as of April 2017 to US$ 250 billion by 2020, majorly backed by ecommerce.

Much growth of the industry has been triggered by increasing internet and smartphone penetration. Internet penetration in India grew from just 4 per cent in 2007 to 35.03 per cent in 2017, registering a CAGR of 24.23 per cent between 2007 and 2017. The number of internet users in India is expected to increase from 481 million as of December 2017 to 829 million by 2021.

A young demographic profile, rising internet penetration and relative better economic performance are the key drivers of this sector. The Government of India's policies and regulatory frameworks such as 100 per cent foreign direct investment (FDI) in B2B e-commerce and 100 per cent FDI under automatic route under the market place model of B2C e-commerce are expected to further propel growth in the sectors.

Sectoral Presentation (February, 2018)

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