The pandemic has forced India’s businesses to do business the digital way and consumers to make purchases by browsing through online catalogues. This burgeoning digital economy is expected to touch $800 billion by 2030, according to a report released by consulting firm RedSeer at its event Ground Zero 5.0.
That's a 10-fold growth over the value assigned to the new-age economy at $85-90 billion in 2020.
As the nationwide lockdowns shuttered multiplexes, malls, and markets, Indians have begun to see online purchases as a means of convenience instead of just using it to get discounts.
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"Digital services have undoubtedly served the customers very well, which is evident in high customer satisfaction and customers willingness to keep using the digital as a key channel to fulfill their needs," said Anil Kumar, founder, and chief executive officer, RedSeer.
India To Become 3rd Largest Online Retail Market By 2030
India's online retailers are expected to see merchandise worth $350 billion passes through their portals by 2030. Currently, the annual gross merchandise value stands at $55 billion, according to the RedSeer report.
In the coming decade, 88 percent of the online shoppers will emerge from smaller cities in India. RedSeer expects more than $150 billion worth of GMV to come from Tier-2+ cities by 2030.
Barring COVID-19’s push towards greater adoption of e-commerce in small-town India, increased focus on smaller towns and cities by e-retailers, lower logistical costs, and growing online spends are some of the other factors that may lead to exponential growth.
That is not to say it will be detrimental to Kirana Stores, which are expected to achieve approximately $1.5 trillion in sales by 2030, according to the RedSeer report. This growth largely driven by growth will be driven by platforms that are enabling these kiranas technologically via cashless payments, digital bookkeeping, and EB2B offerings.
The Role Of New-Age Logistics Players
While creating employment opportunities for gig workers during the pandemic, India’s E-Logistics space became the fastest-growing market globally with over 3 billion shipments in 2020.
Today over 90 percent of the orders fulfilled by online commerce get fulfilled by new-age logistics, an industry that has come over the last decade, according to the RedSeer report.
Further, three out of the top 10 logistics players in India are e-logistics players. The new-age logistics players are expected to deliver 2.5 billion Direct-to-Consumer shipments by 2030.
By covering nearly all the pin codes across India through deep tech solutions, E-logistics has enabled smaller cities to account for over 50 percent of e-commerce shoppers at the end of 2020.
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