Following the footsteps of the US and China, India is now set to become the third largest online retail market globally, with annual gross merchandise value (GMV) touching USD 55 billion in 2021, and USD 350 billion by 2030, says consulting firm Redseer.
Besides the online retail market, kiranas are also expected to achieve approximately USD 1.5 trillion sales by 2030, the firm presented the insights during RedSeer’s Ground Zero 5.0 event.
Today, over 50 per cent of customers say they use online services because of convenience. A few years back, almost 70 per cent used to say the key reason is discounting but with the hit of COVID, 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.”
~ RedSeer founder and Chief Executive Officer Anil Kumar
He added that the next wave of entrepreneurs will create innovations that will make the Indian model successful globally.
The data presented by RedSeer suggests that, 88 per cent of the online shoppers that will be added between 2020-2030 will be from tier II cities and beyond.
Further, more than 7 billion cumulative incremental online retail transactions are to be added from customers in tier II cities and beyond, while over USD 150 billion worth of cumulative incremental online retail GMV is expected to be added from these locations between 2020 and 2030.
RedSeer highlights that Indian e-logistics has become the fastest-growing market globally with over 3 billion shipments in 2020, and new-age logistics players are expected to deliver 2.5 billion D2C (direct to customers) shipments by 2030.
It is the rise of the e-commerce segment which is contributing to the overall success of the Logistics Sector by creating the need for specialised delivery services. The emergence of this sector is creating 5 lakh employment opportunities for gig workers in 2021.