Indian online market to triple retail market growth, driven by digital-first strategies, says report
31 March 2023, Mumbai
The Indian e-commerce market is expected to grow at a compound annual growth rate of 27 per cent to reach $163 billion by 2026, according to a report by Redseer.
This growth is almost three times the rate of growth of the overall retail market, highlighting the significance of digital-first strategies. Digital-first brands now account for over 25 per cent of all online sales, indicating the growing importance of such strategies. These brands are also expanding offline, posing a threat to traditional players.
Currently, digital-first brands typically derive around 75 per cent of their sales online, while traditional players garner less than 30 per cent of sales from online transactions. The research identified 75 Digital Disruptors across three categories: electronics & appliances, fashion & home, and grocery & personal care.
The report also highlighted that while some traditional brands have been able to establish a presence in the e-commerce space, many have struggled to adapt to the agility and financial parameters of the online market.
