Online retail is estimated to jump four-fold to US$ 73 billion by 2022 as millennials are shifting from traditional shopping to e-commerce taking advantage of cheap smartphones and high-speed data, according to property consultant ANAROCK.
The size of online retail stood at US$ 17.8 billion in 2017.
“The Indian retail sector is on a faster roll than ever before. Rapid urbanisation and digitisation, rising disposable incomes and lifestyle changes – particularly of the middle-class – are acting as booster rockets for the Indian retail sector, which is projected to grow from US$ 672 billion in 2017 to US$ 1.3 trillion in 2020,” said Anuj Kejriwal, MD and CEO – ANAROCK Retail.
ANAROCK Retail is an arm of Anuj Puri-led ANAROCK Property Consultants that helps domestic and foreign retailers lease retail space in shopping malls and high-street markets. It also provides other consultancy services related to the retail market. The retail sector attracted US$ 147.4 million during last fiscal as against US$ 104.34 million in the previous year, the consultant said in a report.
Over the last two decades, he said the Indian retail market has witnessed phenomenal changes, evolving rapidly from traditional shops to large multi-format stores in malls, and on to the highly tech-driven e-commerce model.
“India is today one of the fastest growing e-commerce markets worldwide, with millions of new internet users taking advantage of cheap smartphones and high-speed data…In fact, e-commerce in India is growing faster than in other countries like Australia, Japan, China and South Korea,” Kejriwal said.
As per estimates, online retail is projected to grow to US$ 73 billion by 2022, growing at a CAGR of 29.2 percent to the backdrop of a shift from traditional retail to online channels by millennials, he added.
The consultant attributed various factors for sharp rise in online retail such as increasing internet penetration, a young population aided by easier access to credit and payment options, high-speed internet, 24-hour accessibility and secured transactions, among others.
“Realising the potential of online retail, retailers are also luring customers by offering products at discounted prices especially in the consumer durable sector. Options like cash-on-delivery and manufacturers’ warranty have added fuel to the fire. Cash-on-delivery has become the most preferred payment option with over 30 percent buyers opting for it in India,” the report said.