Research Firm Statista released its 2024 Industry report on E-Commerce industry in India. Here is a summary of key insights from the report:
The advent of e-commerce has changed the way India shops, especially after the exponential growth of the internet and online infrastructure of the country. In addition, the shift in consumer shopping behavior since the pandemic and an increasing share of the organized sector within retail markets created a strong foundation needed for the establishment of e-commerce in the market. With a population of more than 1.4 billion and a fast-growing economy, the number of online shoppers is predicted to increase to 427 million by 2027. Consequently, the booming e-commerce industry is estimated to be worth over 300 billion U.S. dollars by 2030.
Besides the increase in disposable income, changing lifestyles, and convenience are the primary factors due to which most consumers prefer online shopping. From groceries to other essentials, everything can be delivered with the touch of a button, sometimes even in 10 minutes, particularly for consumers living in urban areas. Zepto, Zomato, and Swiggy are some major domestic quick commerce brands that provide fast and efficient delivery services.
Digitalization in e-commerce sector
Digitalization made extensive leaps, thanks to the Digital India initiative by the government. Despite recent digital shifts in India’s retail sector and pandemic-related updrafts have boosted e-commerce adoption among both consumers and enterprises. In order to simulate human-to-human contact and offer consumers 24/7 assistance, chatbots, and other AI technologies are set up for a decent shopping experience.
Consumers in Tier 2 and Tier 3 cities are more inclined to make the ultimate choice to buy online due to a great selection of payment options and attractive offers from e-wallets. Smartphone use has also supported the transition to mobile shopping to a point where it was estimated that every third of Indian consumers shop online using a smartphone. Additionally, Amazon and Flipkart were the dominant e-commerce players, battling neck and neck every festive season over extravagant sales. By 2025, the government's aim to create a trillion-dollar digital economy might become a reality after all.
Social commerce
Given the steady increase of social media users in the coming years, brands are coming up with innovative strategies to turn captive audiences into consumers. As a result, the market size of social commerce is likely to reach over 80 billion U.S. dollars in 2030. Besides, users often spend an average of three hours online each day posting, browsing, watching videos, and communicating. It provides a window of opportunity for companies to reach customers with their marketing efforts.
Influencer marketing and celebrity endorsement played a crucial role in the success of social commerce. With the incorporation of new features, Instagram was the most preferred platform for social commerce, followed by Facebook and YouTube. Moreover, advertisements on social media had a greater impact on the purchasing decisions of consumers, especially for skincare and makeup which were the most influential categories for social commerce.
Post content Credits: Statista.com
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