India’s e-retail market is estimated to increase to $150–$170 billion by 2027, finds a new report released by Bain & Company in association with Flipkart. Read more insights from the report below.
The pandemic has been a crucible moment for online retail in India, driving a 12-month acceleration in market penetration (~5% in 2022) and a robust market growth of 25%, which takes the market to $50 billion in 2022. Over the next five years, the e-retail market is estimated to increase to $150–$170 billion (growing at 25%–30% annually) which will double the market penetration to 9%–10%. E-commerce is very small currently and while it is growing, there is opportunity for everyone/all formats to grow. These are among the findings of the new report titled “How India Shops Online 2022”, released by Bain & Company in association with Flipkart.
The sustained e-retail growth is supported by strong underlying fundamentals: a large consumer base with rising affluence, albeit from low levels currently; growing Internet and smartphone penetration enabled by low data prices; and low shipment costs.
India with its 180–190 million online shoppers in 2021 has the third-largest shopper base globally and is well poised to surpass the US as the second largest in one to two years.
Read the full report below: