Consulting firm RedSeer projects the annual gross merchandise value (GMV) of Indian online retail will increase to $350 billion by CY2030 from $38 billion in CY2030. In CY2021, the GMV is expected to increase to $55 billion. Nearly 90 per cent of online shoppers expected to be added between 2020-30 will come from Tier II+ cities. The sector will witness over $7 billion cumulative incremental online retail transactions from Tier II+ customers, while more than $150 billion cumulative incremental online retail GMV will be added from Tier II+ customers over CY 2020-2030.
Some factors to drive this growth for the next few years include companies’ focus on Tier II markets, lower costs of servicing small city markets, growing online spend by ‘digital natives,’ supply-side innovations, and the outbreak of the pandemic that has deepened e-commerce beyond metros.
India’s consumer digital economy including all large consumer facing sectors like travel, ride-hailing, food delivery, e-commerce etc is expected to grow to a $800 billion market by 2030. Kiranas are expected to achieve approximate $1.5 trillion sales by CY2030 driven by platforms that are digitizing these start-ups.
