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Friday, December 8, 2023

Online Shopping Takes Over India: A Surge in E-Commerce Predicted

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In the last three years, there have been 125 million more online shoppers in India, and 80 million more are predicted to join by 2025, according to a survey by the analytics and marketing data firm Kantar.

Affordable cellphones and cheap data plans are fueling the nation’s expanding e-commerce industry, which has prompted large retailers and consumer goods manufacturers to raise their online operations.

India has around 530 million active social media users, 52% of them are millennials, and 600 million users are expected by 2025. As 77 million consumers made purchases on social platforms like Facebook, WhatsApp, and social-commerce websites in 2021, a trend that is predicted to intensify, the growing online presence is anticipated to increase e-commerce sales.

Shopping habits, digital payments, digital advertising, social media content consumption, and the expanding direct-to-consumer (D2C) ecosystem are all examples of India’s quick digitalization. By 2025, there should be 900mn internet users in the nation. According to the survey, it already holds the top spot in terms of digital ad expenditure with 22%, ahead of the United Kingdom (9.3%), the United States of America (10%), France (11%), China (3.3%), and Australia (5.8%).

Data from Kantar’s syndicated assets, including ICUBE and Global Issues Monitor, as well as its Connect, BLI, and CrossMedia databases were used in the analysis.

India is digitising at a quicker rate than ever before, according to Soumya Mohanty, who is the MD and CCO of South Asia Kantar (Insights Division). This is being driven by women and rural people. As customers spend more time online, it is crucial to have a comprehensive understanding of how to reach, market to, engage, and establish brands for them.

According to Biswapriya Bhattacharya, who is the director of B2B & Technology and South Asia Kantar (Insights Division), the combined effort of the digitally connected consumers and the digitally enabled MSMEs, along with powerful ecosystem enablers such as the ONDC, 5G, AI, etc., will be important for India to attain its goal of making a $1-trillion digital economy.

According to Kantar’s analysis, India’s direct-to-consumer ecosystem is at an “inflection point,” by means of D2C brands expected to generate $4 billion in revenue in FY2022 and a market addressable size expected to reach $100 billion or more by 2025.

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