India Ecommerce Market Opportunities Databook - 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales Channel Analysis, Payment Instrument, Consumer Demographics - Q2 2023 Update

According to the publisher, the Ecommerce market in India is expected to grow by 10.75% on annual basis to reach US$107.3 billion in 2023. The Ecommerce is expected to grow steadily over the forecast period, recording a CAGR of 8.68% during 2023-2027. The Ecommerce gross merchandise value in the country will increase from US$96.9 billion in 2022 to reach US$149.7 billion by 2027. The Ecommerce industry is projected to grow at a rapid rate over the next five years in India. Amid the growing digitalization, which has resulted in millions of new consumers accessing online sales channels to make everyday purchases, competition among players has also intensified for customer acquisition and market share. In Q4 2022, leading players such as Flipkart, Amazon, and Meesho also invested significantly in their supply chain infrastructure to handle the increased order volume during the year-end festive season.
While the market is growing at a significant pace, losses for Ecommerce Ecommerce firms have also increased in India, owing to higher spending on customer acquisition costs, which include marketing and discounts. Flipkart, for instance, reported a loss of INR 43.99 billion in FY 2022 compared to INR 29.07 billion in FY 2021. For Amazon, the losses narrowed down to reach INR 36.49 billion in FY 2022. As part of their cost savings effort, both of these leading Ecommerce giants are shutting down some segments of their businesses, including the food delivery business.

Social commerce firms are refocusing their efforts on direct sales amid growing competition in India

To capitalize on the growing Ecommerce Ecommerce market in India, many new entrants in the space adopted the social commerce business model to drive their sales and brand popularity among consumers. These firms are now shifting their focus to direct sales amid growing competition in the market. For instance,

• Meesho, one of the leading players in the Ecommerce category, is now increasingly focusing on direct sales. With over 140 million transacting users on its platform, the firm now derives 75% of its business directly from consumers. On the other hand, social commerce only represents 25% of its business. In 2022, the firm processed more than 910 million orders and reported a growth of 135%, when compared to a year before.
• Part of its growth can be attributed to its strategy of creating a strong supply chain network, which assisted the firm to reach consumers even in Tier III and IV cities of India. To further drive its growth, the firm has now adopted a localization strategy, thereby allowing consumers to access the services in their regional languages. This will further drive traffic for the Ecommerce firm.

From the short to medium-term perspective, the firm is expected to keep recording strong growth in order volumes. Furthermore, Meesho is also projected to increase its investment in the D2C category over the next three to four years.

Quick commerce firms are focusing on profitability and expansion in Tier II cities in India

In 2022, firms operating in the quick commerce space have experienced varied outcomes. New players including Fraazo have shut down operations. Even well-established giants such as Flipkart and Amazon have closed down their food delivery operations as part of their cost-saving strategy. On the other hand, well-funded firms, such as Zepto, Instamart, and Dunzo, have recorded strong growth in 2022.

• Instamart, the grocery delivery service launched by Swiggy, has recorded a 16x growth between June 2021 and June 2022. In H2 2022, the firm has continued to experience strong month-on-month growth, which was largely driven by consumers in Tier I cities. In 2023, the firm is projected to expand its operations in Tier II cities, as it foresees the appetite for food and grocery delivery to increase among consumers from these cities across India.
• Dunzo, another leading player in the segment, is focusing on profitability and claims that more than 15% of its oldest stores have already turned profitable. Going forward, the firm is expected to focus on employing innovative solutions that reduce inefficiencies, while optimizing its supply chains. Dunzo Daily, the quick commerce service offered by the firm, has contributed 70% of the total revenues and recorded a growth of 25x.

From the short to medium-term perspective, these firms are also projected to launch services for new product categories. As consumers continue to engage with newer categories in the quick commerce space, the publisher expects the order volumes to grow significantly over the next three to four years.

India is prepping to launch a government-backed Ecommerce initiative to turbocharge the sector growth

With small businesses losing market share to large Ecommerce giants such as Flipkart, Meesho, and Amazon, the government is planning to launch an innovative platform that will further accelerate the growth of the Ecommerce Ecommerce industry in India.

• Open Network for Digital Commerce, a non-profit organization set up by the Indian Commerce Ministry, has launched trials in 85 cities across the country and is planned for a full-scale rollout in 2023. The interoperable network would allow consumers using one app, say the digital wallet Paytm, to find and order a smartphone from a seller registered on another platform, say Amazon, and get it shipped from delivery service providers like Dunzo, who is offering a faster delivery at a lower price.

The innovative service is projected to further push the growth of the Ecommerce market in India, which has been recording a strong growth trajectory over the last three to four years, owing to increased digitalization in the country.

This report provides a detailed data centric analysis of Ecommerce market dynamics, covering over 100 KPIs in India. It details market opportunity across key Ecommerce verticals - Retail Shopping, Travel & Hospitality, Online Food Service, Media and Entertainment, Healthcare and Wellness, and Technology Products and Services. It provides market share by key players across key verticals along with sales channels (Platform to Consumer, Direct to Consumer, Consumer to Consumer). In addition, it provides spending pattern by payment instruments along with a snapshot of consumer behaviour in India.

The report also covers niche trends such as market size by live streaming engagement model and cross border purchases. It also covers ecommerce spend share by operating systems, device (mobile vs desktop) and cities.

In addition, to detailed data-centric analysis, this report provides analyst commentary on key trends, drivers, strategies, and innovations in the Ecommerce industry in India.

Scope

This report provides a detailed data-driven look at the India Ecommerce industry, covering various segments and highlighting areas of interest across the verticals in the industry. In addition, it provides a comprehensive understanding of market dynamics and future forecast.

India Ecommerce Market Size and Future Growth Dynamics

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Gross Merchandise Volume Trend Analysis

India User Statistics and Ratios of Key Performance Indicators

• User Statistics
• Card Abandonment Rate and Product Return Rate
• Ecommerce Per Capita and GDP Per Capita
• GDP Per Capita Trend Analysis

India Ecommerce Market Share by Key Players

• India Retail Shopping Ecommerce Market Share by Key Players (Ajio, Amazon India, Flipkart, Myntra, Snapdeal)
• India Travel Ecommerce Market Share by Key Players (Expedia, Goibibo, MakeMyTrip, Ola, Uber Taxi)
• India Food Service Ecommerce Market Share by Key Players (Domino's Pizza, Faasos, Pizza Hut, Swiggy, Zomato)

India Ecommerce Market Size and Forecast by Ecommerce Segments (Gross Merchandise Value Trend Analysis, 2018-2027)

• Retail Shopping (breakdown by clothing, footwear & accessories, health, beauty and personal care, food & beverage, appliances and electronics, home improvement, books, music & video, toys & hobby, auto)
• Travel and Hospitality (breakdown by air travel, train & bus, taxi service, hotels & resorts)
• Online Food Service (breakdown by aggregators, direct to consumer)
• Media and Entertainment (breakdown by streaming services, movies & events, theme parks & gaming)
• Healthcare and Wellness
• Technology Products and Services
• Other segments

India Ecommerce Market Size and Forecast by Retail Shopping Sales Channel

• Platform to Consumer
• Direct to Consumer
• Consumer to Consumer

India Ecommerce Market Share by Travel and Hospitality Sales Channel

• Market Share by Travel and Hospitality Sales Channel
• Aggregator App – Gross Merchandise Value Trend Analysis
• Direct to Consumer – Gross Merchandise Value Trend Analysis

India Ecommerce Market Size and Forecast by Online Food Service Sales Channel

• Aggregator App
• Direct to Consumer

India Ecommerce Market Size and Forecast by Engagement Model (Gross Merchandise Value Trend Analysis, 2018-2027)

• Website Based
• Live Streaming

India Ecommerce Market Size and Forecast by Location (Gross Merchandise Value Trend Analysis, 2018-2027)

• Cross Border
• Domestic

India Ecommerce Market Size and Forecast by Device (Gross Merchandise Value Trend Analysis, 2018-2027)

• Mobile
• Desktop

India Ecommerce Market Size and Forecast by Operating System

• iOS/macOS
• Android
• Other Operating Systems

India Ecommerce Market Size and Forecast by City

• Tier 1
• Tier 2
• Tier 3

India Ecommerce Market Size and Forecast by Payment Instrument (Gross Merchandise Value Trend Analysis, 2018-2027)

• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• Cash
• Other Digital Payment

India Ecommerce Consumer Demographics

• Market Share by Age Group
• Market Share by Income Level
• Market Share by Gender

Reasons to buy

• In-depth Understanding of Ecommerce Market Dynamics: Understand market opportunities and key trends along with forecast (2018-2027). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.
• Insights into Opportunity by Ecommerce Categories: Get market dynamics by sales channel to assess emerging opportunities across various segments.
• Detailed analysis of market share by key players across key Ecommerce verticals.
• Insights into Opportunities across key Ecommerce verticals: Retail shopping, travel & hospitality, online food service, media and entertainment, healthcare and wellness, and technology products & services.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate a Ecommerce strategy; assess market-specific key trends, drivers, and risks in the Ecommerce industry.
• Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Ecommerce KPIs, including spend by age, gender, and income level.