A report by consultancy firm Bain & Co and e-tailer Flipkart claims that e-commerce in India is expected to grow at a rate of 25-30 per cent annually for the next five years, with a steady increase in user base that is estimated to beat the second largest ecommerce shopper base USA in the next one or two years.
The report pegged the e-commerce market at U $ 50 billion this year, up 40 per cent from last year.
India had 180-190 million online shopper base in 2021 and it will increase to about 400-450 million users by 2027 when the industry is estimated to be valued at over US $ 150 billion.
The share of fashion will likely increase from 20-25 per cent of overall e-commerce sales to 25-30 per cent.
Manan Bhasin, Partner, Bain & Co. said, “With the pace of growth we are talking about, we are very soon going to be the second largest shopping base, only behind China. Going forward, the category mix in online commerce is expected to evolve, with growing demand for fashion, grocery and other categories as its reach widens across the country.”
He further added that fashion will continue to be the gateway category for e-commerce going forward over the years as most of the time, fashion products would be the first thing users buy online.
