The B2C Ecommerce market in India is expected to grow by 21.52% on annual basis to reach US$105.0 billion in 2022.
The medium to the long-term growth story of the B2C Ecommerce industry in India promises to be attractive . The B2C Ecommerce is expected to grow steadily over the forecast period, recording a CAGR of 14.62% during 2022-2026. The country's B2C Ecommerce Gross Merchandise Value will increase from US$86.4 billion in 2021 to reach US$181.2 billion by 2026.
The B2C e-commerce industry is rapidly changing how business is done in India. Over the last two years, global pandemic-induced lockdowns and social distancing norms have disrupted the traditional Indian retail sector. This has driven the growth of e-commerce transactions in the country.
The Covid-19 pandemic has been a boon for the e-commerce ecosystem. With consumers staying home during the lockdown, many shoppers turned to e-commerce platforms to complete their purchases. The growth of the e-commerce industry in 2021 is expected to continue until 2022.
In the Asian Pacific region, India is expected to become the second-fastest growing economy based on e-commerce sales in 2022. The country is expected to record double-digital growth through 2025. Regarding retail e-commerce sales, India is expected to hold fourth place in the region, behind China, Japan, and South Korea. Notably, the exponential growth in the country has been driven by consumers in Tier II and Tier III cities. Online shoppers from smaller cities have accounted for a growing share of total e-commerce sales.
The significant growth potential of the Indian e-commerce industry also significantly increased investment in the sector. Government initiatives coupled with the rise in smartphone and internet penetration rates and the popularity of the D2C model are expected to further drive the number of online shoppers in the country over the next three to four years. Overall,
The publisher maintains a robust growth outlook for the sector from India's short to medium-term perspective.
Mergers and acquisition strategy is helping e-commerce platforms to tap into new business areas and compete with global leaders
The e-commerce industry in India is a very big market. Consequently, many domestic and global players have their presence in the market. Amid this growing competition, e-commerce platforms are looking into mergers and acquisition strategies to tap into new business verticals and compete with global leaders.
In April 2022, Flipkart Group, owned by Walmart, announced that the firm had acquired ANS Commerce, a full-stack e-commerce enabler that helps brands sell online in the country. The firm's acquisition of ANS Commerce continues strengthening its position in the Indian e-commerce industry. While Flipkart did not disclose the value of the transaction, the acquisition is expected to close in H2 2022.
With social commerce gaining momentum in India over the last two years, industry leaders are also looking to tap into this segment through mergers and acquisitions.
In April 2022, Amazon, one of the leading competitors of Flipkart and a global leader in the B2C e-commerce space, announced that the firm had acquired GlowRoad, a social commerce startup. Through this acquisition, Amazon is looking to make a bigger push in the Indian social commerce market. The acquisition is also expected to help Amazon make inroads with its commitment to digitize 10 million businesses in the country by 2025.
Firms are entering into strategic partnerships to embed travel services onto other platforms
Firms enter into strategic partnerships to embed their travel services onto other platforms to extend their distribution channel and gain access to a wide consumer base.
In November 2021, MakeMyTrip announced that the firm had entered into a strategic partnership with Amazon Pay. Under the strategic collaboration, MakeMyTrip will embed its online travel services into Amazon Pay's platform, allowing the firm to accelerate online travel booking in India.
In addition to getting access to the large user base of Amazon Pay, this will also help MakeMyTrip to extend its distribution channel in the country, especially in Tier II and III cities. The launch of travel services on Amazon Pay's platform means that customers can book domestic flights in addition to bill payments, mobile recharges, shopping, and more, from one place.
Firms are looking to tap into the quick commerce segment of online food service in India to drive growth
The quick commerce industry has gained rapid momentum in India over the last few years. The entry of players like Ola and Flipkart into the quick commerce space raised a few eyebrows. However, the instant delivery segment quickly gained momentum in the food delivery space.
Grofers quickly scaled its operations and rebranded as Blinkit as the firm looked to disrupt food and groceries deliveries in the country in the online food delivery space. With the sector's immense potential, a few startups also entered the market with their strong business models. For instance,
Zepto, the Mumbai-based instantly-delivery startup that promises to deliver groceries within 10 minutes, entered the industry in 2021. In less than a year since starting its operations, the startup has reached a valuation of US$900 million. This shows the growth potential of the quick commerce market in India.
Another testament to the high-growth potential of the quick commerce industry is the entry of big players.
Reliance Retail Ventures, a Reliance Industries affiliate, led the US$240 million investment round in Dunzo, a hyperlocal delivery service.
In India, the hyperlocal segment currently focuses on food and groceries deliveries. The focus of Indian startups on essential goods, such as food and groceries, is the direct outcome of the global pandemic outbreak.
E-pharmacies are offering healthcare products at deep discounts to gain market share in India
While the global pandemic outbreak resulted in the widespread adoption of e-pharmacy apps in India, the deep-discounted product offering from players has further accelerated their growth over the last few years.
Players such as Pharmeasy, 1mg, Netmeds, and Medlife, among others, offer medicine deliveries at discounts ranging from 20% to 30%. This discounted offering and same-day delivery strategies adopted by players have accelerated consumer adoption.
Scope
India B2C Ecommerce Market Size and Future Growth Dynamics
Gross Merchandise Value Trend Analysis
Average Value Per Transaction Trend Analysis
Gross Merchandise Volume Trend Analysis
India User Statistics and Ratios of Key Performance Indicators
User Statistics
Card Abandonment Rate and Product Return Rate
B2C Ecommerce Per Capita and GDP Per Capita
GDP Per Capita Trend Analysis
India B2C Ecommerce Market Share by Key Players
India Retail Shopping Ecommerce Market Share by Key Players (Ajio, Amazon India, Flipkart, Myntra, Snapdeal)
India Travel Ecommerce Market Share by Key Players (Expedia, Goibibo, MakeMyTrip, Ola, Uber Taxi)
India Food Service Ecommerce Market Share by Key Players (Domino's Pizza, Faasos, Pizza Hut, Swiggy, Zomato)
India B2C Ecommerce Market Size and Forecast by B2C Ecommerce Segments (Gross Merchandise Value Trend Analysis, 2017-2026)
Retail Shopping ( breakdown by clothing, footwear & accessories, health, beauty and personal care, food & beverage, appliances and electronics, home improvement, books, music & video, toys & hobby, auto)
Travel and Hospitality (breakdown by air travel, train & bus, taxi service, hotels & resorts)
Online Food Service (breakdown by aggregators, direct to consumer)
Media and Entertainment (breakdown by streaming services, movies & events, theme parks & gaming)
Healthcare and Wellness
Technology Products and Services
Other segments
India B2C Ecommerce Market Size and Forecast by Retail Shopping Sales Channel
Platform to Consumer
Direct to Consumer
Consumer to Consumer
India B2C Ecommerce Market Share by Travel and Hospitality Sales Channel
Market Share by Travel and Hospitality Sales Channel
Aggregator App - Gross Merchandise Value Trend Analysis
Direct to Consumer - Gross Merchandise Value Trend Analysis
India B2C Ecommerce Market Size and Forecast by Online Food Service Sales Channel
Aggregator App
Direct to Consumer
India B2C Ecommerce Market Size and Forecast by Engagement Model (Gross Merchandise Value Trend Analysis, 2017-2026)
Website Based
Live Streaming
India B2C Ecommerce Market Size and Forecast by Location (Gross Merchandise Value Trend Analysis, 2017-2026)
Cross Border
Domestic
India B2C Ecommerce Market Size and Forecast by Device (Gross Merchandise Value Trend Analysis, 2017-2026)
Mobile
Desktop
India B2C Ecommerce Market Size and Forecast by Operating System
iOS/macOS
Android
Other Operating Systems
India B2C Ecommerce Market Size and Forecast by City
Tier 1
Tier 2
Tier 3
India B2C Ecommerce Market Size and Forecast by Payment Instrument (Gross Merchandise Value Trend Analysis, 2017-2026)
