May, 2018     

E-tailing Market Updates-May’18


Online Grocery is expected to be one of the fastest growing category reaching ~4 Bn in 2020

Online grocery and FMCG is the next key category of focus for all the large e-tailers. Online grocery habituates the consumer with frequent purchase thus ensuring the consumers are more accustomed to shopping from the e-tailers. The e-tailers are hence focussing big time on this category. The large verticals on the other hand are growing at a rapid pace. Hence, we expect this category to reach $4 bn by 2020.

 


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.


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