India's e-commerce market to grow 25% in 2020-2021

According to foreign media reports, India's e-commerce market grew by 25% in the 2020-2021 fiscal year, with a market size of US$38 billion.

There are two main reasons for the growth of India's e-commerce market. The first reason is that due to the impact of the Covid-19 epidemic, the Indian government implemented a regional lockdown policy, and the online consumption index climbed. The second reason is that the retail market shrank by 5%, and online business sales expanded.

According to the report "How to Shop Online in India in 2021" released by Brain&Company and Flipkart, there is a huge contrast between the development of India's retail market and e-commerce market. India's GDP and retail market both shrank by 5% from 2020 to 2021, but despite this, India's e-commerce market still grew by 25%.

At the same time, some e-commerce related companies are also booming, such as Bluedart, Gati, Shree Terupati and other express delivery companies. E-commerce has an increasing impact on India, from the initial change in people's consumption methods to the current influx of a large number of investors in India, many companies have switched to the e-commerce field, and India's e-commerce infrastructure construction and related transportation industry chain.

The report believes that the Indian e-commerce market will grow at an annual rate of 25%-30% in the next five years . India currently has an online consumer base of 140 million, making it the third largest online consumer center after China and the United States. At the same time, India's e-commerce penetration rate in 2021 was 4.6%, and it is showing a gradual upward trend. Therefore, the report predicts that by 2026, the Indian e-commerce market will grow by US$12-140 billion.

In addition, the report pointed out that during the two shocks of the first and second Covid -19 virus, different types of growth occurred in different commodity categories in the Indian e-commerce market. For example, categories such as home appliances, mobile phones and electronic products experienced a one-time surge, which slowed down as offline retail recovered and products had a long replacement cycle. Grocery and household goods categories continued to grow significantly, while travel and fashion-related products slowed down.

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