Online Retail Market In India – The New Normal

India, the country which contributes 1.39 billion to the worlds population, has the massive retail market and is one of the top retail markets in the world. The retail industry in India has undergone a major transformation and has witnessed tremendous growth.

Online retail in India was increasing gradually and the pandemic outbreak has led the acceleration of online market penetration deeper into the 2-tier and 3-tier cities and increasing the market share by 2 folds in tier-1 cities.

THE NEW NORMAL

Post pandemic, there happens to be an new era of online shopping. Its digital everywhere, it maybe ordering online groceries, fruits, vegetables, electronics, shoes and food or making payments digitally. Even a vendor on a cart has the option of digital payments. The digital market has penetrated deeply into the business and India is heading towards the Digital world.

Having seen the vast opportunities, many new startups have plunged into the online retail space and the more established ones have started expanding their market share. This new normal of Online shopping is going to stay and create more opportunities.

THE MARKET POTENTIALS

As Indian retail industry has emerged as one of the most dynamic and fast-paced industry, many new and established players have started exploring the opportunities. Indian retail industry accounts for over 10% of the country’s gross domestic product (GDP) and around eight% of the employment.

The Indian retail market is estimated to reach 1.5 tn by 2030. India currently has the 4th largest retail market in the world. And Indian E-commerce market is set to grow by 84% by the end of 2024.

As per the report How India Shops Online 2021 by consulting firm Bain and online retailer Flipkart, India has the third-largest online shopper base of 140 million, there is immediate potential to reach India’s large internet user base of approximately 625–675 million people. The e-retail market is expected to grow to $120–140 billion by FY26, increasing at approximately 25–30 per cent per annum over the next 5 years. It also says that, “The growth will be led by smaller towns that account for four out of five new shoppers. In addition to small towns, women and older shoppers have gained prominence in the online shopper base over the last year, and this trend is expected to continue,”

SUMMING UP

Online Market businesses is booming. The amount of online retail sales continues to grow exponentially, year after year. Even though the pandemic have accelerated the growth the online shopping and this surge is going to stay even after the pandemic. And E-Retail will continue to benefit millions of shoppers from across India, driving with easy access and heightened convenience.