A recent report generated by Deloitte India and Retail Association of India revealed that the fast growing e-commerce market in India will reach USD 84 billion in 2021 up from USD 24 billion in 2017 due to a healthy growth in the organized retail sector.
The report also said that a positive outlook is being conferred to the consumer businesses in India because of a fast growing economy and robust demographics. And that these aspects will also ignite the retail market growth in India, making the country the third largest retail market in Asia and fourth largest in the world, the report said.
According to the study, the retail market in India is likely to grow to USD 1.2 trillion by 2021 from USD 795 billion in 2017, the report unveiled.
“Further, as the internet penetration in the country increases and more international retailers start operating in India, the share of organised retail market is expected to increase from 12 per cent in 2017 to 22-25 per cent by 2021. “
“This will also be driven by the growth of e-commerce market from USD 24 billion in 2017 to USD 84 billion in 2021,” the report said.
The report titled ‘Unravelling the Indian Consumer’ also said that the augmenting internet penetration across semi-urban and rural segments, smartphone usage and online shopping will help boost the sales.
“India continues to hold a strong position as far as its market potential is concerned and is on its way to becoming the third largest consumer market in the world, poised to grow close to USD 1.2 trillion by 2021,” Anil Talreja, Partner, Deloitte India said.
The report added that consumer experience will be the core focus of the companies.
“Against the backdrop of the Indian and global economies that set the stage for achieving globalisation, innovation, M&A activity, and increased digitalisation, consumer companies are likely to continue to reinterpret traditional levers to stimulate growth in a competitive business environment,” it said.
Source: The Economic Times