India’s online retail market to reach $170 billion by FY30, says report
By Retail4Growth Team | April 19, 2019
The total online retail in the country is currently pegged at $18 billion and is growing at a CAGR of 23 per cent, according to a Jefferies report quoted in media.
A Jefferies study cited in media reports says that online retail in the country is expected to reach $170 billion by FY30, growing at a CAGR of 23%.
According to the report, online retail in the country is currently around 25 % of the total organised retail market in India and can potentially increase to around 37 % of the total organised retail market during this period. The reports also pegs the current total online retail in the country at $18 billion.
Spends per online shoppers, which is estimated at Rs 12,800 is expected to increase to Rs 25,138 by FY30, with consumers shopping online for other segments, beyond electronics and apparel, it adds.
The report points to the increase in online market share of the electronics segment, including mobile phones, largely due to heavy discounting and cash-back online in electronics.
The report surmises that new customers will continue to enter the online grocery, even as categories such as personal care grow their online market share and adds that in the long run convenience will outrun discounts as the key driver. The report also adds a note of caution regarding the quality of products sold online and the issue of data safety and security.
Walmart has launched a new voice shopping service, that is seen as a move to counter Amazon’s strong ecommerce presence.
The Gartner research finding reported in the media also says that 46% of retailers will deploy Augmented Reality and Virtual Reality solutions by 2020 to meet shopper demands.