India’s online retail market is also set to become the third-largest globally, after the US and China, with annual gross merchandise value (GMV) touching USD 55 billion in 2021, and USD 350 billion by 2030, according to a report by consulting firm RedSeer.
Presented during RedSeer’s Ground Zero 5.0 event, the report notes that the country’s consumer digital economy is expected to become a USD 800 billion market by 2030, growing from USD 85-90 billion in 2020, driven by strong adoption of online services like e-commerce and ed-tech.
“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,” PTI quoted RedSeer founder and Chief Executive Officer Anil Kumar as saying.
He added that the next wave of entrepreneurs will create innovations that will make the Indian model successful globally.
As per RedSeer data, 88 per cent of the online shoppers that will be added between 2020-2030 will be from tier II cities and beyond.
Further, more than 7 billion cumulative incremental online retail transactions to be added from customers in tier II cities and beyond, while over USD 150 billion worth of cumulative incremental online retail GMV is expected to be added from these locations between 2020 and 2030, RedSeer stated.
