New Delhi, (Asian independent) As the e-commerce sector grows in India, the value e-commerce market in the country has the potential to reach $40 billion by 2030, according to a report by global consulting firm Kearney.
The report noted that Indian consumers have always been value conscious, and much of the overall demand is for affordable, smaller-ticket items. From a consumer’s perspective, “value” means finding affordable products while also getting acceptable quality, durability and trendiness, it said.
As retail in India bounces back after the Covid onslaught, the report observed that the growing number of value-conscious online shoppers is reshaping India’s e-commerce landscape.
Noting that the value segment is pegged to grow rapidly, Siddharth Jain, Partner, Kearney, said: “While only 4 per cent of this demand is today served by online channels, this will rise to 19 per cent by 2030, creating a $40 billion market for value e-commerce in India.”
As more Indian buyers embrace online shopping, the contours of India’s e-commerce are also changing to reflect the needs and aspirations of the newer cohorts of Indian online buyers.
Currently valued at $4 billion, value e-commerce is expected to grow rapidly to reach $20 billion by 2026 and to $40 billion by 2030, a 10x growth in 10 years, the report said.
“Value-conscious consumers are shifting to online buying, driven by huge adoption in mobile internet. We estimate 350 million active internet users by 2026, of which nearly 90 million will be from rural India,” said Manoj Muthu Kumar, Principal, Kearney.
“These value conscious consumers from tier 2+ and rural areas will contribute to 38 per cent of India’s value e-commerce market demand by 2026,” he added.