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
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
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
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
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
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.