When Walmart closed a deal to acquire a 77% stake in
And grow it shall. According to eMarketer, a market intelligence firm, online retail sales are expected to rise by nearly a third $4 aided by the growth of the discount hungry-middle class and continued smartphone and internet penetration. This makes India’s e-commerce market the fastest growing in the Asia-Pacific after those of China and Indonesia.
Room to grow
As Walmart was closing its Flipkart detail, it forecasted that India’s e-commerce sector would grow $4 as the overall retail sector over the next five years. The product segments that will contribute to this growth are mainly groceries and fashion.
India’s e-commerce market has tripled in size since 2015. While the rate of growth becomes harder to top each year as the market expands, e-commerce sales will still comprise only 3% of the total retail sales in India this year. Hence, there’s a lot of room to grow. In fact, online sales are expected to more than double between 2018 and 2022, reaching $72 billion.
More people are shopping online in India than ever before. By the end of the year, around a quarter of the population will be shopping online. This proportion is expected to rise to nearly 42% by 2022.
Companies with big pockets
This growth is also being driven by the companies that are primed to benefit from it.