Indian consumers’ enthusiasm for e-commerce has reached new heights, with the gross merchandise value crossing the $60 billion mark so far in FY2023.
The fiscal year runs until June 30.
internal growth rate
While the jump from FY2022 to FY2023 is impressive, it represents a slowdown in growth rates. From fiscal year 2021 to fiscal year 2022, GMV increased from $36 billion to $49 billion, an increase of 36%. According to Redseer, the change from 2022 to 2023 is only 22%.
Still, it’s a compelling display of growth.
In a trend that can be seen globally, the pandemic has driven more Indian consumers into e-commerce channels amid lockdowns and a sharp reduction in face-to-face shopping.
Mrigank Gutgutia, Partner at Redseer, wrote that E-commerce in India “slowed gradually post-pandemic but continues to outperform overall retail consumption.”
assess the market
India regularly joins Latin American countries such as Peru, Brazil, Argentina, Chile, Colombia and Mexico in the world’s fastest-growing e-commerce market.
Of course, China remains the dominant e-commerce market, accounting for 46.3% of all retail e-commerce, According to Shopify’s November 2022 report. In that report, the United States ranked second, with a market about one-third the size of China.
daniel caseThe factors affecting e-commerce growth have changed since the onset of the pandemic and its worst impact, notes the senior analyst for business services at Javelin Strategy & Research.
“With the unique environment driving consumers to shop online more than ever before, merchants can’t expect to see the growth in e-commerce sales levels or adoption they saw early in the pandemic,” Keyes said.
“But merchants can still grow today by creating a seamless online shopping experience that is easy to use and tailored to consumer preferences. Ensuring that digital platforms are integrated with the in-store shopping experience can help engage in-store shoppers to develop digital relationships , and potentially boost e-commerce sales in the process.”