by Apparel Resources News-Desk
18-May-2019 | 2 mins read
The e-commerce market in India could see a marginal slowdown in its annual sales growth due to the fall in consumer spends and recent government policies, according to the latest data from Forrester.
The estimates say that the industry would grow at a rate of 26 per cent in the next four years as compared to an earlier prediction of the annual growth rate of close to 30 per cent.
According to Forrester’s previous estimates, the online retail market would have been US $ 73 billion in size by 2022. The revised growth estimates predict the segment to grow to about US $ 69 billion by the same period.
India will, however, retain its fastest-growing online marketplace tag as China is witnessing a slowdown too. Forrester predicted that China, which is a bigger market than India, would grow at an annual rate of 13.7 per cent even as India would clock nearly 26 per cent.
“It’s a mix of reasons that has led us to revise the estimates. First, consumer spending across segments is slowing down and recent policy changes have caused an additional dent to e-commerce sales,” said Satish Meena, Senior Forecast Analyst, Forrester.
The revised growth estimates are of significance as both Walmart and Amazon are trying to win India, the only major market left outside the US. Alibaba dominates China.
Talking about market share battle, both Amazon and Flipkart continue to be at a neck-and-neck level with gross sale market shares of 31.2 per cent and 31.9 per cent, respectively, on a standalone basis.
Forrester said a bigger worry for both the US retail giants is Reliance Retail’s upcoming entry into the online commerce business.
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