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In Pics: Key growth drivers of e-tail in India

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Key growth drivers of e-tail in India

Key growth drivers of e-tail in India

Key growth drivers of e-tail in India

Indian online retail has witnessed a surge in recent years and is expected to swell up to 8 per cent of the total industry by 2026, from its contribution of 2 per cent in 2016. There are multiple factors which contribute to the growth of e-tail in India:-

Growth of Digital Penetration

Growth of Digital Penetration

With the percolation of mobile devices in the country coupled with increasing Internet penetration, online retail has witnessed tremendous boost in recent years.

Limitation of Brick-and-Mortar Format

Limitation of Brick-and-Mortar Format

Majority of brick-and-mortar brands are concentrated in metros and Tier I cities only. This gives an advantage to online retailers as they are not bound by the limitations faced by brick-and-motar retailers.

Increase in Cashless Transactions

Increase in Cashless Transactions

Cash crunch due to demonetization along with improvement in netbanking facilities has added up in the growth of e-commerce industry in the country.

Growth in Cities Beyond Metros

Growth in Cities Beyond Metros

Huge discounts in festive seasons, availability of exclusive products, etc., have made consumers residing in Tier I and Tier II cities migrate to these online channels.

Improved Supply Chain and End-delivery Logistics

Improved Supply Chain and End-delivery Logistics

Online retailers have been providing several benefits over brick-and-mortar outlets to attract their consumers. They are giving several payment options, mode of delivery, point of delivery, etc.