E-commerce surge: India to add 80 million online shoppers by 2025
- The nation's booming e-commerce market is driven by affordable smartphones and low-cost data plans, leading major retail and consumer goods makers to increase their investments in the online space.
New Delhi: India has gained 125 million online shoppers in the past three years, with another 80 million expected to join by 2025, according to a report by marketing data and analytics company Kantar.
The nation's booming e-commerce market is driven by affordable smartphones and low-cost data plans, leading major retail and consumer goods makers to increase their investments in the online space.
With over 530 million active social media users in India, of which 52% are millennials, and the number is projected to reach 600 million by 2025. The increasing online presence is expected to boost e-commerce sales, as 77 million shoppers purchased from social platforms such as Facebook, WhatsApp and social-commerce sites in 2021, a trend set to accelerate.
India's rapid digitization is evident through shopping behavior, digital payments, digital ad spending, content consumption on social media, and the growing direct-to-consumer (D2C) ecosystem. The country is on track to have 900 million internet users by 2025. It already leads in digital ad spending at 22%, ahead of the UK (9.3%), the US (10%), Australia (5.8%), France (11%) and China (3.3%), the report said..
The report used data from Kantar’s syndicated assets like ICUBE, Global Issues Monitor, along with Kantar’s Connect, BLI and CrossMedia database.
“India is digitizing at a faster pace than ever before. Women, rural will drive this in future and it will also become more cross generational. As consumers spend more time online, it is important to get a holistic picture of how to reach them, sell to them, talk to them, and build brands for them,” said Soumya Mohanty, managing director and chief client officer, South Asia, Insights Division, Kantar.
The collective thrust of the digitally connected consumers and the digitally enabled MSMEs, coupled with strong ecosystem enablers like the 5G, ONDC, AI, etc. will be critical to India achieving its goal of creating a $1 trillion digital economy, said Biswapriya Bhattacharya, director, B2B & Technology, South Asia, Insights Division, Kantar.
Kantar's report highlights India's D2C ecosystem as being at an "inflection point," with D2C brands generating $4 billion in FY2022 and an addressable market size predicted to exceed $100 billion by 2025.
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First Published:21 Apr 2023, 01:47 PM IST
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