Ecommerce is also predicted to contribute over USD 160 billion in gross merchandise value (GMV) by the financial year 2029 (FY29)
With the growth of new age and traditional brands across the channels propelling the transformation, a report has stated that the country is moving towards being a branded market from a brand-deficient market. A report by Redseer Strategy Consultants has stated that branded retail is projected to cross the USD one trillion of scale in 10 years (around four times of today’s scale).
The report added that the rise of multiple ecommerce models will support India’s brandification. Ecommerce is also predicted to contribute over USD 160 billion in gross merchandise value (GMV) by the financial year 2029 (FY29), largely driven by growth in fashion, beauty and personal care (BPC), and grocery categories and increasing consumption from Tier 2 cities.
Highlighting the need for logistics partners, the report stated that as brands race to capture growth in new markets through multiple digital channels, partnering with and working effectively with the right logistics providers emerges as a key unlock for this growth.
“The digitisation and brandification of India’s retail base underscore a market which has never been “one size fits all”. From cosmopolitans in metro regions with high discretionary spending to emergent buyers in Tier 3+ cities prioritising affordability, each segment exhibits distinct purchasing behaviours and brands need to adapt accordingly,” as per the report.
The report highlighted that despite the rapid growth of quick commerce, traditional ecommerce constructs will be well positioned to reach USD 100 to 120 billion in terms of GMV in this period, which will also include a large share from constructs like same-day delivery.
