Since the first online festive season in 2014, India's e-commerce market has grown ~20x in annual GMV and ~15X in annual active user terms. Over these 10 years, Indian eTailing has transformed almost entirely as the annual GMV for overall e-tailing industry has grown almost 20 times in the period. That is, while in 2014, the industry clocked a GMV of 27,000 crores in the whole year, this year (2023) the same is expected to be approx. 5,25,000 crores. In the process, the number of annual transacting users has jumped 15X.
The Indian eTailing has increasingly become the litmus test for consumer demand in India. The 10th festive season sale period is even more significant this year considering the recent slowdown in consumption and the almost 3 years of external shocks on the economy.
Wider Macro Context
Pre-COVID, the YOY growth rates of nominal Private Final Consumption Expenditure (PFCE) used to be around 8-9 percent. However, due to continuous external shocks like COVID- 19 and Russia-Ukraine conflict, there was significant flux in the market. And in the last couple of quarters of FY23, there was material consumption slowdown due to tightening liquidity conditions.
However, the YOY growth for PFCE has bounced back to 9 percent and several stabilising factors are kicking in. For instance, interest rates are maxing out, countries aiming to resolve the Russia Ukraine conflict, and the Indian economic growth numbers are coming in strong. So, there are meaningful tailwinds to support a relatively strong festive period this year.
eTailing Performance in India
This story is from the November 2023 edition of Images Retail.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 2023 edition of Images Retail.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
How can Brands Delight Customers?
A look at strategies to bring customers back and turn them into potential brand advocates
Smaaash Mulls VR-only Arcades in Future
Avanish Agarwal, Consulting CMO, Smaaash sheds light on business, expansion plans and more
Meesho is Built Upon the Bedrock of Technology
Nilesh Gupta, General Manager, Growth at Meesho shares his insights on the growth factors, technology and relevance of the brand in tier 2 cities and beyond
High Streets Emerge Top Leasing Choice for Luxury Brands in 2023, Malls Remain Second
Malls remain the second most preferred luxury realty category, with 300% Y-o-Y growth with high streets lead with about 45% share in India’s overall luxury retail leasing in 2023
Special Events in Malls
Nexus Select Citywalk and Kiran Nadar Museum of Art (KNMA) organised the collaborative exhibition, ‘The Art Maze; from March 24 to March 31, 2024. Inspired by the works of prominent Indian artists - Lakshman Pai, Raja Ravi Verma, Jamini Roy, SH Raza, and Vivan Sundram; The Art Maze aimed to portray an immersive journey into the world of artistic expression for the participants anve d visitors.
CRA Realtors: Inspiring Trust
CRA Realtors boasts about 70% repeat customers, which speaks volumes about the trust the real estate agency has inspired over more than 18 years of existence
Why South India is Witnessing Renewed Retail Surge a
Industry leaders on the factors propelling retail growth in South India and their projections for future expansion metrics in the region
Tier 2 Cities Lead with 64% of March Store Launches
About 48 of all the new stores opened in March 2024 were in non-metros
5 Top Indian Jewellery Brands with the Strongest Retail Footprint
These homegrown jewellery retail gems have been instrumental in shaping the country’s jewellery sector and continue to shine bright amidst stiff competition on the global stage
Demand for Lab-grown Diamonds to Double by 2030. Here's Why
Exploring the different facets of this emerging segment that is increasingly attracting retailers, investors and consumers to it