How India’s e-commerce market is expected to grow by 21.5% in 2022
E-commerce has transformed the way consumers shop in India over the past few years, supported by an increase in internet and smartphone penetration, an increase in digital literacy and the government’s digital push.
In fact, India’s e-commerce market is expected to grow by 21.5% to reach $74.8 billion in 2022, according to data and analytics firm GlobalData.
In addition, the pandemic has accelerated the shift to online shopping and the emergence of new virus variants will push people more towards online shopping, according to the report.
“The Covid-19 pandemic has accelerated consumers’ transition to digital payments in most markets, a trend has also been seen in India,” said Ravi Sharma, Principal Banking and Payments Analyst, GlobalData.
He added that e-commerce payments in India are expected to grow at a compound annual growth rate (CAGR) of 18.2% between 2021 and 2025 to reach $120.3 billion.
While Indian consumers were comfortable buying non-essentials such as clothes and electronics even before the pandemic, now they are also comfortable buying essentials such as health products. grocery store. Blinkit (formerly Grofers) and BigBasket are the main players in this space, with Amazon and Flipkart also making their mark.
Jasmeet Thind, co-founder of CoutLoot, said, “Social commerce is likely to be driven largely by consumers looking for trust and bargains, which is quite unique for Indians. It’s like the digitization of high street shopping and Coutloot has been at the forefront. . We help these sellers, who mainly sell non-MRP products, expand their reach and cater to customers across the country through the use of local languages and video. From now on, a seller no longer needs a storefront to do business.”
The rise of e-commerce has also boosted electronic payments in India. To support non-cash payments, Flipkart introduced Quick Response (QR) code-based payments for on-delivery shipments in June 2021, helping consumers switch from cash to digital payments via the unified payment interface (UPI).