Indian e-commerce Industry has two-fold challenge of “Less people buying” and “People buying less”
India has one of the lowest online shopper penetration in comparison to other countries which signifies that a small share of internet users is buying online. However, the penetration in metro and tier-1 cities is growing at a faster pace than tier-II cities. Also, the annual spend per shopper on online shopping is still very low in comparison to US and China. This is not so much a sign of worry as Indian e-commerce is on a growth phase and the new consumer coming to the platforms, shops for lower price standardized products. We feel going forward the online shopper penetration will increase and the e-tailer will be able to provide a good experience resulting in the consumer buying more.