The thriving e-commerce industry in India is expected to be worth USD 200 billion by 2026, making it one of the fastest growing channels for commercial transactions according to Care Ratings.
The industry is said to have “high potential for growth” as retailers now look to leverage digital retail channels.
“With advancements in the quality of internet access, payments and computing on mobility platforms, changed consumer behavior with a large active internet user base, customers have the ever-increasing choice of products at the lowest rates by various retailers,” said Madan Sabnavis, chief economist of Care Ratings. “E-commerce is probably creating the biggest revolution in the retail industry, and this trend would continue in the years to come.”
As of September 2018, internet subscribers in India were at 560 million and is projected for a further increase to 830 million by 2021. Care Ratings also noted that approximately 10 million daily active internet users are being added to the count every month.
Another key growth driver is convenience as e-commerce demands less time and offers wide choices of products, payment options and discounts.
Nearly half (44%) of the country’s e-commerce sales are purchases related to electronics and accessories segments whilst apparel and lifestyle account for 30%. Home & Living and Food & Grocery comprise 5% and 1% of the industry’s sales respectively. ―Singapore Business Review