Online retail sector is expected to dominate the e-commerce market
The e-commerce market in India is anticipated to reach a value of Rs.26,459.18 billion by the end of 2027, expanding at a compound annual growth rate (CAGR) of ~26.71% in five years from 2022, according to a report by ResearchAndMarkets.
It was valued at Rs.6,210.96 billion in 2021, the “E-commerce market in India 2022-2027”, report said on 8 Nov 2022.
The market has grown exponentially over the past five years due to the surge in Internet and smartphone users, improved policy reforms and increase in disposable income.
“Mobile wallets, Internet banking, and debit/credit cards have become popular among customers for making transactions on e-commerce platforms,” said the report.
Based on product categories, the market can be segmented into online travel, retail, financial services, matrimony and classified, and other services.
Consumers’ buying patterns have changed significantly, especially regarding categories, such as health and pharma, groceries and food deliveries. In 2021, the online travel segment in India was impacted severely by the COVID-19 pandemic, said the report.
“By 2027, the online retail sector is expected to dominate the e-commerce market in India because of a growing consumer base and increasing FDIs,” said ResearchAndMarkets.
E-commerce companies have brought in various technologies, such as voice recognition, virtual reality (VR), augmented reality (AR), fintech, artificial intelligence (AI), and machine learning (ML) to attract customers and compete with other players. Organizations such as Amazon, Flipkart, Goibibo, Ola, Zomato and Ixigo have employed voice assistants for assisting customers with their queries, thereby improving customer satisfaction.
They also use fintech-based payment platforms such as PayPal, Apple Pay, Google Pay and Amazon Pay to offer secure and efficient online payment methods to consumers.
The market is led by:
Infibeam Avenues Limited
Info Edge (India) Limited
One97 Communications Limited
Thomas Cook (India) Limited
BigTree Entertainment Limited
Flipkart Internet Limited
Jasper Infotech Limited
MakeMyTrip (India) Limited
People Interactive (India) Limited
Amazon India Limited. fiinews.com
