NEWS

Online penetration of retail in India is expected to reach 10.7% by 2024

By VARINDIA - 2022-02-03

India is the fastest growing E-commerce market. India’s start-up ecosystem is growing, which is well supported by favourable FDI policies, Government initiatives like Start-up India and Digital India, as well as the rising internet penetration driven by market players like Reliance Jio. The online retail market in India is estimated to be 25 per cent of the total organized retail market and is expected to reach 37 per cent by 2030.

Moreover, online shoppers in India are expected to reach 220 million by 2025. This shows the kind of impact online retails have on people. With the increasing business, there are certain expectations too for online retail. With half a billion Indians coming online, the chances of a customer’s first touchpoint with your brand being digital have increased substantially. Online penetration of retail in India is expected to reach 10.7% by 2024 and India e-commerce sector is expected to reach US$ 111.40 billion by 2025.

Retail 4.0 is well on track to bringing a convergence of the online and offline experiences. Shoppers need no longer choose between one or the other, as a digitally enabled ecosystem creates a unified experience across various channels. There is also a renewed focus on cost optimization in retail operations. Retailers are evaluating multiple avenues including direct-to-consumer (D2C) models and hyperlocal delivery for essentials. Backing it all are data-led insights and innovative technologies like cloud, AI, ML, big data, and immersive media.

There is a sharp Increase in aggregator companies, better FDI policies, fintech investments and the self-reliant manufacturing of products are some of the ways the industry’s growth is being augmented.

The ongoing COVID-19 pandemic is driving retailers worldwide to fundamentally reassess how they do business. The crisis has also made clear the importance of technology to the industry. The retail market size is expected to reach 1.5 trillion by 2030 compared to the estimated market size of $793 Billion in 2020.

The ongoing Omnichannel assistance that combines the traits of both online and offline buying experiences, will become mainstream and amplify online-led exports. Going forward, digitization will take over the entirety of back-end operations and revolutionize inventory management, enterprise scheduling and employee management. Unmanned Aerial Vehicles (UAV) like Drones will speed up the delivery and distribution of retail goods.

Retail chains will implement Gamification via apps, social media, QR codes etc in their physical and online stores to heighten shopping experience, track real-time purchase behaviour etc. Predictive Analytics tools will become more readily available to all D2C outlets regardless of size and enhance personalization, sales forecasts etc.