Covid-19 may lift India’s e-commerce market to around $85 billion by 2024
June 29, 2020
Though the transaction volumes on e-commerce platforms such as Amazon, Flipkart and Snapdeal have returned to the level of pre-Covid time, high-value transactions are expected to take place by next year.
Right now these players are burning a lot of cash to retain customers who are spending money mainly on low-value transactions as their purchasing power has been impacted by Covid-19, according to the analysts and industry insiders.
However, they said the pandemic is expected to help uplift India’s e-commerce market almost threefold to around $85 billion by 2024, despite other sectors being impacted severely. Other e-commerce players which are expected to witness a rapid increase for various services include Grofers, BigBasket and Lenskart. Presently about 80 percent of order volume has picked up.
“Right now people are buying a lot of low ticket items from platforms such as Amazon and Flipkart which you would usually buy from the local market because people don’t want to go out. That is why the order volumes have increased,” said Satish Meena, a senior forecast analyst at Forrester Research. Customers in India are conserving cash due to Covid-19 impact unlike other places such as the US where there is a lot of stimulus from the government. “But we are expecting the customers (in India) to start spending on big-ticket items (such as laptops, smartphones and appliances) by next year,” said Meena.
According to industry insiders and analysts, the market opportunities for online commerce in the country are expected to touch $200 billion by 2028 from $30 billion in 2018. Presently customers are shifting from the “survival mode” to adjusting to the new reality of the post-Covid-19 world. They are buying affordable goods and moving away from more expensive brands.-Business Standard