1、 The rapid development of the Indian e-commerce market
As one of the most promising markets in the global e-commerce industry, the Indian e-commerce market is continuously growing at an unprecedented rate.
Recently, according to media reports, the Indian e-commerce industry is entering a stage of rapid development and is expected to surpass the United States by 2034 to become the world's second-largest e-commerce market. According to the Indian Brand Equity Foundation (IBEF), the current value of the Indian e-commerce market has reached $70 billion, accounting for approximately 7% of the overall retail market. It is expected that the Indian e-commerce market will continue to climb at a compound annual growth rate of 27% in the coming years, and by 2026, the market size will reach $163 billion.
In terms of overall development, India's e-commerce market scale continued to rise, first of all, due to the continuous growth of the country's Internet and smartphone penetration. Data shows that India will have more than 821 million users in 2023, making it the second largest Internet market in the world. On top of this vast user base, affordable smartphones and low-cost data packages enable more Indian people to easily shop online, injecting new vitality into the development of the e-commerce industry.
In addition, the growing demand of Indian consumers for online groceries and fashionable clothing is also an important driving force for the prosperous development of the Indian e-commerce market. The data indicates that the online grocery market in India is experiencing exponential growth, and it is expected that by 2027, its market size will significantly increase from $3.95 billion in 2021 to $26.93 billion. In the field of fashion apparel, the current market size has reached 11 billion US dollars, and it is expected that this market size will continue to climb at a compound annual growth rate of 25% in the coming years.
2、 Platform competition drives industry development
Of course, in addition to the increasingly improved digital infrastructure and the growing demand for online shopping from consumers, as an important part of the e-commerce industry, the role played by e-commerce platforms cannot be ignored, especially Amazon and Flipkart. Although they are competitors, their back and forth competitive actions have objectively played an important role in promoting the overall development of the e-commerce market in India.
According to Statista data, as of 2022, Flipkart has the highest market share in the online retail market in India, reaching 38%, followed closely by Amazon India with a market share of 35%. Although the difference between the two is not significant, the smaller the gap, the more likely it is to trigger intense competition. The competition among leading enterprises is often guided by expanding market breadth and deeply exploring consumer demand, which will inevitably lead to the overall upward development of the e-commerce market.
Taking the member delivery services of two platforms as an example. Firstly, in terms of cost, the delivery fees for Amazon Prime members are lower than those for Flipkart Plus members. However, since 2021, Flipkart has been continuously reducing its membership delivery fees and maintaining a relatively low level; In terms of delivery, the two companies have similar speeds; In terms of user retention rate, the difference between the two is only 6%. It can be said that the competition between the two in platform services has entered a tug of war, and it is precisely this tug of war that demonstrates the tireless efforts of e-commerce platforms in achieving business growth.
Of course, these two platforms are not the only ones busy cultivating in the Indian e-commerce market. As a dark horse in the fashion e-commerce field, Myntra's expansion speed in the Indian market is also very rapid. In 2023 alone, Myntra attracted up to 75 million new users in the Indian e-commerce market, and its monthly active users could reach 60 million at one point.
This series of platform business growth shows the unlimited potential that is increasingly emerging in the Indian e-commerce industry. In this context, more market opportunities will continue to emerge to drive the soaring of seller business. Of course, there are often risks hidden behind opportunities. Only by constantly monitoring market trends, accurately understanding market trends, seizing opportunities, and cautiously attacking can we take advantage of the rapid development of the Indian e-commerce market and achieve greater success in our own business.
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