The report notes that quick commerce is making need-it-now shopper missions mainstream, boosting frequency and top-ups
With a shopper base nearing 440 million, India’s ecommerce market is expected to reach USD 300 billion by 2030, as per a report by Boston Consulting Group (BCG) revealed. Category-focused platforms now account for over 60 per cent of online spending whereas horizontal marketplaces contribute just under one-third.
The ‘USD 300 Billion Connected Commerce – How clicks and bricks are defining the future of India’s ecommerce’ report noted that quick commerce is making need-it-now shopper missions mainstream, boosting frequency and top-ups, while social commerce and community-led discovery are bringing newer and smaller-city users into the fold of ecommerce.
Multi-channel is the norm as nine of ten online shoppers still shop offline and five of ten offline shoppers use online to research and gather information. Emerging formats (such as quick commerce, social commerce) are growing with over 50 per cent compound annual growth rate from 2021 to 2025. The report highlighted that 300 million Indians now shop online with around 30 per cent from rural India and around 45 per cent women.
The time to scale to Rs 100 crore in revenue has reduced from 11 to seven years with ecommerce, the report pointed out. Currently estimated at USD 75 to 85 billion, e-retail is projected to reach USD 170 to 180 billion; e-services at USD 45 to 55 billion is projected to reach USD 120 to 130 billion by 2030. The share of online retail is larger in mobiles (46 to 48 per cent), personal electronic devices (22 to 24 per cent), durables (19 to 21 per cent), beauty, and apparel.
The report, which was unveiled at IAMAI’s Digital Commerce Dialogue in New Delhi, added that growth in some new and upcoming categories is driven largely by ecommerce, as the ecommerce spend on protein supplements saw around 55 to 60 per cent CAGR from 2021 to 2025. The same for pet supplies was around 45 to 50 per cent during the same period.
The report mentioned that horizontal marketplaces constitute only around 31 per cent of total ecommerce as many new formats emerge. While young adults (35 years and below) prefer vertical platforms (36 per cent) as their preferred channel of ecommerce spending, older adults (35 years and above) trust horizontal marketplaces (55 per cent).
Quick commerce currently contributes to one in every two rupees spent digitally on food in India. Grocery subscription commerce players execute over ten million monthly deliveries. The report also emphasised that India has 2 to 2.5 million monetised creators influencing around 30 per cent total shoppers.
