India's e-retail market is on track to surge to $160 billion by 2028, as revealed in the latest report by Bain & Company, in partnership with Flipkart. Discover more key findings and trends from this insightful report below.
India’s e-retail market is poised for significant growth, with projections indicating it could surpass $160 billion in value by 2028. As of 2023, the market is valued between $57 and $60 billion, showing a substantial annual increase since 2020. Despite this growth, online spending in India remains a small fraction of total retail spending, particularly when compared to the US and China, suggesting a large potential for further expansion. This insight among several others is included in “How India Shops Online 2023,” a report by Bain & Company in collaboration with Flipkart.
Key growth drivers identified in the report include improved access to digital and physical infrastructure, increased affordability, and the emergence of comprehensive digital ecosystems. Affluence among consumers is also a critical factor that’s expected to drive future online spending. The current year is expected to see about 240 million Indian shoppers engage in e-retail, with a significant proportion yet to make the transition to online shopping. The consumer landscape is increasingly diverse, with a notable presence of shoppers from Tier 2+ cities and the Gen Z demographic.
The report also sheds light on the evolving seller ecosystem in India, which has seen a substantial increase in new sellers, particularly from smaller cities. There’s a growing trend of insurgent online-first brands, which are resonating well with younger consumers. New business models such as quick-commerce and hyper-value commerce are emerging, reshaping consumer shopping habits and preferences.
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