Online retail spending in India to hit $300 bn by 2030: report
1 min read 07 Jul 2022, 01:01 AM ISTAccording to BCG, the shift towards online commerce was accelerated by three to four years during the last two years of the pandemic
PremiumNEW DELHI : Emerging e-commerce trends point towards rapid adoption of online shopping among Indian consumers, with the user base growing three times and spending rising sixfold to touch $300 billion by 2030, up from $50 billion in 2021, Boston Consulting Group (BCG) said in a report on Wednesday.
According to the consulting firm, the shift towards online commerce was accelerated by three to four years during the last two years of the pandemic.
“This e-tail growth received a kick-start from covid-19 pandemic, which pushed many consumers to begin shopping online for the first time and encouraged existing shoppers to increase online purchasing, as physical shopping channels closed or became difficult to access. The effect was to accelerate growth in the number of online shoppers in India by approximately four years and in the amount of spending by about three years," Nimisha Jain, managing director and senior partner BCG India, said.
By 2030, retail spending in India is expected to breach the $1,650 billion mark.
BCG studied over 800,000 online transactions by 10,000-plus consumers from across 40 metros and tier 4 cities, and 50 towns and villages, besides conducting expert interviews and studying industry reports to arrive at the findings.
The rapid growth of e-commerce in India is hardly a surprise as it has among the lowest data and smartphone costs, growing internet penetration, and the proliferation of new online shopping channels, the report said. Internet penetration in India has more than doubled in the past five years, reaching over half of its population as of 2021, it added.
With rapid growth in internet users, digitally influenced shoppers and online shoppers doubled in recent years to 260-280 million and 210-230 million, respectively, in 2021.
The report said rural areas will account for over half of e-shoppers and one-fourth of spending by 2030. Small cities have huge potential for growth of e-commerce in India, with tier 2 or below cities already accounting for 30 of top 50 mature markets. These could be the source of an estimated 60% of urban e-shoppers and 45% of spending by 2030, it added.
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