India’s e-commerce market, currently valued at $120–140 billion, is expected to double to $280–300 billion by 2030, accounting for 7–8% of total consumer spending. Despite this growth, offline retail has also thrived, expanding at a rate of 13-14% annually over the past four years. The market is now witnessing a coexistence of online and offline retail, with a rising trend of multi-channel shopping where half of offline shoppers use online platforms for product research.
The report highlights that India has nearly 300 million online shoppers, a number projected to reach 440 million by 2030. Notably, around 30% of these online shoppers are from rural India. E-commerce in India encompasses both e-retail and e-services, estimated at $75–85 billion and $45–55 billion respectively. The growth trajectory is expected to be driven by e-services, with a projected compound annual growth rate (CAGR) of 20–22%, outpacing e-retail’s growth rate of 16–18%.
According to the report, consumer behavior is evolving, with shoppers seamlessly transitioning between online and offline platforms based on factors like convenience, trust, and necessity. Women shoppers, in particular, express a preference for online shopping due to reasons such as privacy, accessibility, and the flexibility to shop independently at any time. Kanika Sanghi, Partner and Director at BCG, emphasized the need for platforms and brands to offer simpler, safer, and more seamless shopping experiences across various touchpoints to cater to the diverse needs of consumers.
The rise of quick commerce, growing at over 100% CAGR, has made immediate and top-up shopping missions mainstream, increasing purchase frequency. Additionally, social and chat commerce have seen significant growth at a rate of 40-45% CAGR. The report also noted a reduction in the time taken for online brands to achieve Rs 100 crore in annual revenue, dropping from around 11 years to approximately 7 years.
