Jun, 2018     

E-tailing Market Updates-June’18


Rapid growth in digitally savvy users will lead to doubling of e-tailing share as a percentage of total retail

The Indian consumers are becoming more digital savvy with each day. Reducing data prices and increasing smartphone penetration is leading to an increase in the data consumption per user. On the other hand, e-tailers are focussing on providing good end-to-end consumer experience. And hence, we expect the combined effect of these two will lead to an increase in the share of e-tailing market.


Industry to have 4.9 mn daily shipments by 2020

The e-tailing industry had 1.8 mn daily shipments in 2017. The industry is expected to witness a 40% Y-o-Y growth powered by the increasing penetration in T2 cities coupled with emerging segments such as cosmetics and appliances in metros and T1 cities. We hence expect the daily shipments of the industry to reach 4.9 mn by 2020.


Increase in frequency of buying along with online shoppers across the categories will drive the industry growth

The e-tailing industry is expected to witness a 40% CAGR to become a $50 bn market by 2020. Two key factors contributing to this growth would be increase in the number of shoppers and increase in frequency of buying online. The no. of shoppers are expected to increase with the shift in focus of e-tailers towards Tier-II+ cities. Increased online penetration of smaller categories with higher frequency of purchase will make the consumers more habituated with the platforms.


See similar stories