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India Online Retail market is expected to reach over USD250 billion during the forecast period, due to the increasing usage of smart phone and convenience of purchasing daily essentials & luxury products from any location, among others. Such factors are driving market growth.Speak directly to the analyst to clarify any post sales queries you may have.
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India Online Retail Market Scope
The purchasing and selling of goods & services using online channels, mostly through the internet and other media forms, is referred to as online retail market. It entails the transactional activities carried out by retailers through online shopping platforms, and marketplaces that facilitate the product exchange between businesses and consumers.To present their product options, attract customers, and enable smooth transactions, online retailers use a variety of channels, including websites, mobile apps, and social media platforms. The market provides an extensive range of products in numerous categories, including electronics, clothing, cosmetics, household goods, groceries, and more.
India Online Retail Market Overview
The growing popularity of India online retail market is fueled by various factors including rising internet use, smartphone usage, convenience, a wide variety of products, competitive pricing, and social media influence.Indian e-commerce industry has seen a significant growth in the past few years, which has resulted in the emergence of a huge retail segment. The development of technological advancement such as augmented reality (AR), virtual reality (VR), the Metaverse, and experiential retail, are transforming customer interactions, and has contributed significantly in the increase of the number of online retailers. Additionally, benefits of online retail, such as discount offers, easy access, range of availability of the product on a single platform, etc. are expected to boost the market growth.
The online retail industry in India is significantly influenced by the availability of a wide variety of products such as electronics, apparel, cosmetics, household goods, groceries, and other products available on e-commerce platform. The wide range of product selection meets the needs and preferences of Indian consumers. Furthermore, online retailers often collaborate with both local and international brands, giving consumers access to a wide variety of national and international products that may not be accessible in local physical stores.
Moreover, discounts, deals, and attractive pricing strategies play a substantial role in promoting the India online retail market. Discounts, flash sales, and promotional offers are constantly offered by e-commerce platforms, attracting price-conscious customers. These low rates, along with the convenience of home delivery, make online shopping attractive to many Indian consumers. Furthermore, the availability of numerous payment methods, such as cash-on-delivery digital wallets, contributes to the ease and accessibility of purchasing goods online.
India Online Retail Market Drivers
The growth of the online retail sector is expected to be supported by increasing usage of smartphones and internet penetration, along with rising internet users for making online purchases across the country. India has a population of more than 1.3 billion, and as of 2022, India has 692 million total internet active users, including 341 million from urban and 351 million from rural Indian, according to the Internet and Mobile Association of India. More and more people are able to access the internet and engage in online shopping because of the widespread availability of affordable mobile phones and data plans. For instance, according to RAI (Retailers Association of India), India’s online retail market contribution to the overall retail market in India, is estimated to be 10.7 percent by 2024, when compared to 4.7 per cent in 2019.However, the convenience and accessibility provided by e-commerce platforms is another significant driver of the Indian online retail industry. Online retailers allow customers to browse and purchase things from the comfort of their own homes. The purchasing process has been made simpler by e-commerce platforms by providing a large selection of products, alluring discounts, and safe payment methods. For instance, in 2022, according to the Internet and Mobile Association of India (IAMAI), around 346 million Indian consumers are engaged in online transaction including digital payments, and e-commerce. Furthermore, the availability of quick service providers has assured timely delivery to some of the remote locations, allowing online retailers to expand their reach.
Additionally, the Indian government's focus on digitalization, as well as programmes like 'Digital India' and “Start-up India,' contributed to an encouraging environment for online retailers. Furthermore, regulatory changes and the implementation of the Goods and Services Tax (GST) have streamlined the taxation structure, making it easier for online retailers to operate across states. As a result, government initiatives and policy reforms are the significant driving factors for fostering the growth of the India online retail market.
India Online Retail Market Trends
Retailers are increasingly embracing omnichannel strategies, which involve the strategic integration of multiple digital platforms and physical touchpoints to provide a consistent and tailored shopping experience. Thus, this trend is having a significant impact on the market and consumer purchasing behavior. The ongoing fashion trends enable users to browse and purchase products using a variety of platforms, including websites, mobile applications, and social media, while also acknowledging the changing preferences of consumers and the demand for convenience shopping.Moreover, the rapid expansion of social media and digital marketing, has contributed to the development of the Indian online retail industry. To increase their reach and improve brand recognition, e-commerce platforms are effectively utilizing social media platforms, influencers, and specific advertisements. Social media platforms allow individuals to share their shopping experiences, post reviews, and make recommendations, all of which have an impact on other people's purchasing decisions. These elements will accelerate the growth of the India Online Retail market throughout the course of the forecast year.
India Online Retail Market Challenges
The online retail market in India faces many challenges, including inadequate infrastructure and a lack of standardized postal addresses, affecting the effectiveness of order fulfillment and customer satisfaction, as well as delivery accuracy. Additionally, logistics cost in India are high due to the lack of proper infrastructure. As a result, some online retail players, such as Flipkart and Amazon, have to build up their own logistics departments. In a similar manner, Flipkart has its own e-kart logistics company to manage their delivery process. Similarly, some other online retailers are associated with logistics companies in order to deliver customer orders. Limited airline feet size is another challenge faced by logistics companies in India, hindering the delivery of priority services, such as same day delivery, to customers.Moreover, many Indian consumers prefer to pay by cash on delivery (COD), which presents a challenge for online retailers. Order cancellations, refunds, and frauds are all challenges associated with COD transactions. For online businesses, managing COD operations associated costs can be difficult, affecting profitability and cash flow management. Thus, all these factors can restrain the growth of the online retail market in India.
India Online Retail Market Opportunities
With social media exposure and its rising awareness, Indian consumers are seeking access to international fashion brands. Limited reach of physical retail outlets of brands in smaller cities provides an opportunity for online retailers to cater to the rising demand for international brands among Indian consumers.Additionally, the online presence of footwear is the highest among the lifestyle categories, due to the growing acceptance of the online platform among footwear brands, particularly sports brands. Furthermore, some sports brands have established a distinct line of products for the online platform. The online platform is also becoming increasingly popular among private labels. Exclusive partnerships with international brands by the country's well know online retailers, are resulting in the demand for footwear, supporting the expansion of India Online Retail market.
Market Segmentation
The India online retail market is segmented based on product category, region, and competitional landscape. Based on product category, the market is further fragmented into food & beverages, personal care, apparel & footwear, electronics & appliances, home & furniture, and others. Based on region, the market is divided into North, South, East, and West.Company Profiles
Flipkart Internet Private Limited, Myntra Designs Private Ltd, Amazon Retail India Private Limited, Reliance Retail Limited, Snapdeal Private Limited, Tata UniStore Limited, Nykaa E-Retail Pvt Ltd, Brainbees Solutions Pvt Ltd (Firstcry.com), Clues Network Private Limited (ShopClues), Fashnear Technologies Private Limited (Meesho), are among the major market players in the global platform that lead the market growth of the India online retail market.Report Scope:
In this report, the India Online Retail market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:India Online Retail Market, By Product Category:
- Food & Beverages
- Personal Care
- Apparel & Footwear
- Electronics & Appliances
- Home & Furniture
- Others
India Online Retail Market, By Region:
- North
- South
- East
- West
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the India Online Retail market.Available Customizations:
With the given market data, the publisher offers customizations according to a company’s specific needs.This product will be delivered within 1-3 business days.
Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Voice of Customer Analysis (B2C Model Analysis)
5. India Online Retail Market Outlook
6. India Food & Beverages Online Retail Market Outlook
7. India Personal Care Online Retail Market Outlook
8. India Apparel & Footwear Online Retail Market Outlook
9. India Electronics & Appliances Online Retail Market Outlook
10. India Home & Furniture Online Retail Market Outlook
11. Market Dynamics
12. Market Trends & Developments
13. SWOT Analysis
16. Competitive Landscape
17. Strategic Recommendations/Action Plan
18. About the Publisher & Disclaimer
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Flipkart Internet Private Limited
- Myntra Designs Private Ltd
- Amazon Retail India Private Limited
- Reliance Retail Limited
- Snapdeal Private Limited
- Tata UniStore Limited
- Nykaa E-Retail Pvt Ltd
- Brainbees Solutions Pvt Ltd (Firstcry.com)
- Clues Network Private Limited (ShopClues)
- Fashnear Technologies Private Limited (Meesho)
Table Information
Report Attribute | Details |
---|---|
No. of Pages | 73 |
Published | October 2023 |
Forecast Period | 2023 - 2029 |
Estimated Market Value ( USD | $ 82 Billion |
Forecasted Market Value ( USD | $ 176 Billion |
Compound Annual Growth Rate | 13.8% |
Regions Covered | India |