The retail eCommerce market in India is growing at commendable pace. The exploded smartphone adoption and deep penetration of high-speed mobile internet connectivity have emerged as the catalyst for the retail e-commerce boom in the country.
According to the latest report from eMarketer, a leading market research firm, India, with an estimated 27% YoY sales growth, is expected to top the chart of the world’s fastest-growing retail eCommerce markets in 2021.
Due to the lockdown caused by the ongoing pandemic, a sizeable share of the population has turned towards eStores for shopping. Besides, various studies have highlighted that leading Stores have added a record number of first-time online shoppers since the beginning of the pandemic in India. As people are getting more acquainted with online shopping and digital payments, eStores are keeping them glued with various offers and discounts. All of this is resulting in the record sales growth in retail eCommerce in India.
Retail eCommerce Sales India: The Big Picture
- The retail commerce sales in India is estimated to reach $66.76 billion in 2021, up by 27% as compared to the previous year.
- The retail eCommerce market in India would continue to clock an impressive growth rate of above 20% in the next few years.
- Despite all boom and impressive projected growth rate, the retail eCommerce market has still scratched the surface of total retail sales in India. It’s estimated that in 2021, the retail eCommerce sales in India would account for just 7% of total retail sales in India.
- In 2020, retail eCommerce sales in India reached $52.57 billion, clocking 30% YoY growth.
- Covid19 has changed the market dynamics of the retail market in India significantly. Last year, India was ranked among the worst-performing retail markets in the world with just 18% YoY growth. The second wave of Covid19 has made the situation even worse for India as reports project just 5% YoY growth rate in 2021.
- India’s retail eCommerce sales is projected to go as high as $145 billion by 2025, clocking 25.1% CAGR between 2021 and 2025.
- In spite of all impressive figures of sales and yearly growth rate, eCommerce would account for just 10.3% of India’ total retail sales by 2025.
- With 27% YoY growth rate, India emerges as the fastest-growing retail eCommerce market in 2021. This is followed by Brazil and Russia which are estimated to clock 26.8% and 26.1% growth rate, respectively, in 2021.
- The unprecedented growth in India’s retail eCommerce sales helps the country beat the global retail eCommerce sales growth estimation with a distant margin.
India eCommerce Market: Food For Thought
The yearly growth of the eCommerce market in India puts India at the pole position but when it comes to eCommerce sales, India is still much behind US, China and UK. Just to put things in perspective, US eCommerce sales are expected to reach a whopping $933.30 billion in 2021 – 14 times bigger than India. The eCommerce market is expected to account for 20% of the country’s total retail sales by 2024, while In India it would still be hovering 10% by 2025.
The growth of retail eCommerce in India is still quite commendable considering the country’s struggles with unemployment, social unrest, and a stunted economic recovery. But, considering the fact that India is the second most populated country, is the rise in the number of online shoppers satisfying enough to compete with the US or China? Probably, it requires a deeper look at the data!