BackIndia’s e-commerce market to see 300 mn shoppers by 2025
Currently, India’s e-commerce market accounts for 3.4% of overall retail market with an online GMV of $30 billion
PremiumIndia’s e-commerce market is set to clock $100-120 billion in gross merchandise value (GMV) and 300-350 million shoppers by 2025, a report by Bain and Co. said.
Currently, the e-commerce segment in India accounts for 3.4% of the overall retail market with 100-110 million users, and an online GMV of around $30 billion, the report prepared in partnership with Walmart-owned Flipkart said.
India lags behind China in e-commerce penetration with the neighbouring country, which had a 14% online retail penetration at the end of 2019. According to the report, “increased mobile and internet penetration, with improved logistics and payment infrastructure" helped China stay ahead. Between 2000 and 2006, when internet-based commerce was still booming globally, only 1% of India’s population shopped online. This number remained static until 2012. By 2019, 11% of India’s population shopped online. China, on the other hand, saw a staggering 62% of its population buying products online by 2019.
“Worldwide, e-retail has witnessed a predictable growth trajectory, starting with an increase in shopper penetration triggered by a sharp drop in data prices. China had similar levels of shopper penetration as India, eight years ago, which grew from 8% to 40% triggered by a drop in data prices and improved e-retail infrastructure," it added.
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