08 August 2023, Mumbai

The collaborative report from Shiprocket and ONDC reveals that Indian consumer spending is set to exceed $4 trillion by 2030, driven by a robust 10% compound annual growth rate (CAGR).

Factors Driving Exponential Growth

The report, titled 'eCommerce In The New Bharat And Its Future,' was unveiled at Shiprocket's esteemed SHIVIR summit in 2023.

It highlights key drivers including technological advancements, increased internet penetration, a thriving local consumer ecosystem, evolving spending patterns, rising female workforce participation, and supportive policies like Make in India and Aatmanirbhar Bharat.

The report emphasizes the pivotal role of India's youthful demographic, with a median age of 31 by 2030, in propelling this growth. The study underscores the potential in targeting millennials and Gen Z, projected to form 77% of India's population by 2030.

Categories like food, housing, apparel, transportation, communication, and personal care are expected to witness a twofold spending increase.

E-commerce Dominance in India

E-commerce is noted as a crucial catalyst for this rise, as almost 80% of consumers favor online marketplaces. The report highlights 76% of consumers opting for prepayment, with UPI as the leading choice (57%), followed by credit cards (31%), and other methods like wallets and net banking.

Digital adoption; UPI's popularity is expected to reduce cash transactions by 34% and boost digital payments by 88% by 2026. Fashion and lifestyle currently dominate online shopping, accounting for 48% of purchases, followed by electronics (32%) and groceries (30%).

Discover India

Over 50% of Indian consumers prioritize product quality in their online purchases. Despite growth potential, the report reveals that 72% of Indian brands haven't explored international sales.

Although 38% find overseas markets appealing, an equal percentage are uncertain about the process. Both local and international consumers are keen on Indian products.

About 40% of brands focus on multiple sales channels, and 38% identify efficient logistics as a significant challenge for both domestic and international operations.

Latest Textile Events 

09 August 2023, Mumbai

Reliance Retail, the retail arm of billionaire Mukesh Ambani's Reliance Industries, has crossed the milestone of 1 billion transactions in FY23.

Expands reach into tier 2 and 3 markets

Adds multiple stores; The company also added 3,300 new stores, taking its total count to 18,040 stores with a total area of 65.6 million square feet. Reliance Retail plans to continue expanding its reach into tier 2 and 3 markets through store network expansion.

Omnification

The company's digital commerce and new commerce businesses contributed to 18% of its revenue in FY23. Reliance Retail is also investing in the backend warehousing and logistics assets of its retail business.

It has added 12.6 million sq ft of warehouse space during the year.

Reliance Retail has also forayed into the FMCG sector, relaunching the iconic beverage brand Campa and its own brand 'Independence'.

Vision

Its beauty business also launched the digital commerce platform 'Tira' and opened its flagship store in Mumbai.

Reliance Retail envisions expanding its offerings and scale of operations to make products available to Indian consumers at affordable prices.

Latest Textile Events

Unveiling

Cantabil Retail India Ltd., a prominent apparel manufacturer and retailer, has unveiled its 5th retail outlet in Nagpur, Maharashtra. Covering 1850 sqft., the store at Plot No 5, Amar Sanjay Housing Society, Manish Nagar, offers formal, casual, and ultra-casual clothing for all at competitive prices.

Expanding retail footprints

With eyes on expanding, Cantabil aims to achieve 500 stores across India by 2023 end.

Management of Cantabil Retail India Ltd. expressed excitement that the new Nagpur store continues its legacy of premium clothing in contemporary style.

Latest Textile Events

12 August 2023, Mumbai

In the first quarter of the current fiscal year, V-Mart Retail reported a 15.41% rise in revenue from operations, reaching Rs 678.52 crore, compared to Rs 587.88 crore in the corresponding period last year. However, the company faced a net loss of Rs 21.94 crore for the quarter.

Shifting Profit Dynamics

Contrasting with the previous year's April-June period, which had seen a net profit of Rs 20.45 crore, this quarter recorded a net loss. The company attributed this shift to various factors affecting profitability.

EBITDA Margin and Acquisitions

The company's EBITDA margin remained robust at 13% of revenue, excluding losses from the recently acquired Limeroad marketplace segment. EBITDA, signifying Earnings Before Interest, Taxes, Depreciation, and Amortisation, maintained its significance in assessing operational performance.

Expense Increase and Income Growth

Total expenses for the value fashion retailer surged by 25.67% to Rs 708.99 crore in the Q1 of FY 2023-24. On the other hand, total income climbed to Rs 680.02 crore, marking a 14.87% rise during the June quarter.

Expansion Strategy

The company continued its growth strategy by adding 9 new stores in the June quarter, reaching a total of 431 stores.

09 August 2023, Mumbai

Platform reports profitability

Meesho, a Bengaluru-based platform specializing in value commerce, achieved profitability in July 2023, marking a significant milestone.

The company demonstrated impressive growth, with a 54% increase in revenue and a commendable 43% rise in order volume over the past year.

Notably, Meesho is the pioneering horizontal ecommerce platform in India to attain profitability. This achievement can be attributed to factors including robust order volume expansion, improved monetization, and strategic cost reduction.

Revenue growth & order volume growth

Over the last twelve months, Meesho experienced a substantial 43% increase in order volumes, exceeding one billion orders.

Particularly remarkable is the 120% growth in non-fashion categories within the same period. Crucially, Meesho's profitability strategy involved an 80% reduction in customer acquisition costs (CAC) and marketing spending year-on-year, along with a 15% reduction in employees in May as part of cost-cutting measures.

Nuances

Valued at $4.4 billion and backed by around $1.06 billion in equity funding from investors like SoftBank, Prosus, and Sequoia, Meesho serves 140 million transacting customers, processing 3.5 million daily orders.

Notably, it refrains from charging commissions to sellers, offering diverse categories such as apparel, electronics, and home essentials.

Meesho's profitable milestone holds significance in the Indian ecommerce industry, positioning the company for sustained growth and a competitive stance against industry giants like Flipkart and Amazon.

Latest Textile Events

07 August 2023, Mumbai

Unveiling

The Latest Store Additions at Mall of Ranchi

The recently launched Levi’s store is now open and features a captivating collection of denim jeans, jackets, shorts, graphic t-shirts, sweaters, and other essential casual western wear.

Discover; Meanwhile, Biba, the renowned women’s and girl’s clothing brand, has also made its grand entrance, showcasing a wide array of clothing, accessories, and sleepwear.

For those seeking smart casual ensembles and office attire, the new Arrow store has you covered with a diverse selection.

This expansion of well-known pan-India brands into the Tier 3 city of Ranchi underscores the growing appetite for branded fashion in rural areas of India.

Promising

Situated in the promising industrial hub of Jharkhand, The mall, initiated by Pranami Group, a prominent real estate and construction company, celebrated its inauguration in late July.

With its roots dating back to Bijay Kumar Agarwal's establishment of the business in Ranchi in 2002, Pranami Group excels in providing both commercial and residential properties.

Latest Textile Events