Online retail gets bigger share of total retail: RAI
24 February 2023, Mumbai
The contribution of online retail to the total retail market in India is projected to increase to 10.7 per cent by 2024 when compared to 4.7 per cent in 2019. So say Anarock and Retailers Association of India.
On the other hand, offline retail will hold approximately 89.3 per cent of the total Indian retail market by 2024 as against 95.3 per cent in 2019.
In 2020, category-wise consumer electronics and apparel held the largest share in e-commerce retail at 40 per cent each followed by food and grocery and jewellery at seven per cent and furniture at two per cent.
Despite the rising penetration of online retail in the total organised market, India continues to be a dominant offline retail market. Online retail continues to command a very small pie of the overall business. The organised retail sector is projected to grow at a compound annual growth rate of 25 per cent.
In terms of private equity (PE) investments, while PE investments have recovered, they have not reached pre-pandemic levels. PE investments in retail of the total PE investments in real estate have decreased to six per cent in the year 2022 from 16 per cent in the year 2019.
