India’s e-commerce industry has been on an upward growth trajectory and is expected to surpass that of the United States to become the second largest e-commerce market in the world by 2034, according to the India Brand Equity Foundation (IBEF), which said the sector in India will reach $99 billion by 2024 from $30 billion in 2019, expanding at a 27 per cent compounded annual growth rate (CAGR), with grocery and fashion-apparel likely to be the key drivers.
An IBEF snapshot suggests that as most Indians have started shopping online rather than stepping outside their houses, “the Indian e-commerce sector witnessed an increase. India's e-commerce festive sale season from October 15 to November 15 in 2020 recorded ₹58,000 crore ($8.3 billion) worth of gross sales for brands and sellers, up 65 per cent from ₹35,000 crore ($5 billion) last year.”India's e-commerce industry is likely to surpass that of the US to turn the second largest e-commerce market by 2034, according to the India Brand Equity Foundation, which said the sector in India will reach $99 billion by 2024 from $30 billion in 2019, expanding at a 27 per cent CAGR, with grocery and fashion-apparel the likely key drivers.#
Much of the growth in the industry has been triggered by increasing internet and smartphone penetration. Internet penetration rate in India went up to nearly around 45 per cent in 2021, from just about 4 per cent in 2007. That is, nearly half of the population of 1.37 billion people have Internet access now. The country is second in the world in terms of active internet users.
The number of smartphone users in India was estimated to reach over 760 million in 2021, with the number of smartphone users worldwide forecasted to exceed to 3.8 billion users in 2021.
The e-commerce space is thus spawning unicorns and big brands that are here to stay, said IBEF. These brands in turn are likely to be big spenders on advertisements.
ALCHEMPro News Desk (DS)
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