India's consumer digital economy is projected to turn a $800-billion market by 2030, growing from $85-90 billion in 2020, driven by strong adoption of online services like e-commerce and education technology, according to consulting firm RedSeer, which recently said the country’s online retail market is also set to become the third-largest globally, after the United States and China.
India’s online retail market’s annual gross merchandise value (GMV) will touch $55 billion in 2021, and $350 billion by 2030. Besides, kiranas (small grocery stores) are expected to achieve approximately $1.5 trillion sales by 2030, it said.India's consumer digital economy is projected to turn a $800-billion market by 2030, growing from $85-90 billion in 2020, driven by strong adoption of online services like e-commerce and education technology, according to RedSeer, which said the country's online retail market is also set to become the third-largest globally, after the US and China.#
The insights were presented during RedSeer''s Ground Zero 5.0 event.
According to RedSeer data, 88 per cent of the online shoppers that will be added between 2020 and 2030 will be from tier II cities and beyond.
Further, more than 7 billion cumulative incremental online retail transactions will be added from customers in tier II cities and beyond, while over $150 billion worth of cumulative incremental online retail GMV is expected to be added from these locations between 2020 and 2030.
RedSeer said e-logistics in India 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 direct-to-customer shipments by 2030.
With the rise of e-commerce, the need for specialised delivery services emerged, which led to the overall growth of the logistics segment. Emergence of this sector is creating 5 lakh employment opportunities for gig workers in 2021.
According to RedSeer research, shared mobility saw a sharp decline due to the second wave-led lockdowns in the last two months. Although the autos segment recovered the fastest, the overall sector merely clocked 18 million rides, a drop from 113 million rides in January last year.
However, while the shared mobility is dipping, personal mobility space is riding on a wave of strong traction seen since last year.
"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 (CEO) Anil Kumar was quoted as saying by a news agency.
The next wave of entrepreneurs will create innovations that will make the Indian model successful globally, he added.
Fibre2Fashion News Desk (DS)
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