Flipkart in collaboration with Bain & Company in its annual report on “How India Shops Online 2021” brings a post-pandemic view of online shopping in India with an in-depth analysis of changing online shopping patterns of Indian consumers.
The report focuses on the Indian e-retail penetration acceleration and the continuously evolving state of the online shopper landscape. The $810 billion Indian retail markets is the fourth largest in the world and is quickly evolving to include a sizeable e-retail component. India is home to the third-largest online shopper base of 140 million, only behind China and the US. However, the market is still massively untapped, and there is immediate potential to reach India’s large Internet user base of approximately 625 to 675 million people.
Key takeaways:
- India e-commerce market grew 25 pc to touch $38B in FY21
- India e-commerce market is expected to grow 25-30 percent annually over the next five years to reach a size of $120-140 billion by FY26
- The future growth of the e-tail segment in India is expected to be driven by the smaller towns, that account for four out of five new shoppers
- Women and older shoppers have gained prominence in the online shopper base over the last year, and this trend is expected to continue
- Frequent-use categories such as groceries, household, personal care saw rapid growth, and are likely to continue seeing accelerated growth post-pandemic.
- One in 10 platform users adopt voice search, and one in three new e-retail users visit through a vernacular platform interface
- 40 percent of online shoppers made at least one purchase through social media channels so content creators and influencers will play an increasingly critical role in the future of commerce.
