India e commerce market is anticipated to develop at a compound annual growth rate (CAGR) of 27% to $99 billion by 2024, according to Goldman Sachs. Furthermore, Reliance Industries (RIL) would control half of India’s online grocery sales. India will experience significant development in e-commerce by 2024 thanks to a variety of e-commerce sectors, including retail, fashion, and clothing, and Reliance Industries is proving to be one of the biggest contributors.
Retail online penetration is anticipated to increase from 4.7 percent in 2019 to 10.7 percent by 2024.
Reliance Industries’ entry into e-commerce and the company’s partnership with WhatsApp for online grocery is the biggest near-term elements in the Indian internet. Reliance Industries is the country’s largest publicly traded company and has operations in a variety of sectors, including energy, telecom, and retail.
Facebook has acquired a 9.99 percent share in Jio Platforms, a RIL subsidiary that is home to the biggest and youngest telecom firm in the nation as well as a number of applications. JioMart, a project of RIL, would leverage WhatsApp on Facebook to link customers with neighborhood supermarkets.
Improved payment ecosystems, easier buying via WhatsApp, and increased penetration into sectors like food and FMCG would all contribute to India e commerce market’s growth. According to Goldman Sachs, they anticipate a significant rise in non-grocery e-commerce penetration of 500 basis points over the following two years to reach 16.1 percent The final 500 basis points of the rise took four years to achieve.
According to Goldman Sachs, Bigbasket and Grofers controlled more than 80% of the online grocery industry in 2019. Online grocery has been expanding at a pace of over 50% annually for the past few years, but due to the COVID-19 epidemic, which caused a shift to online shopping, and the recent arrival of RIL, the growth will go up to 18% CAGR between 2019 and 24 months.
As of 2019, there is a significant amount of internet penetration, at approximately 40%, in industries like consumer electronics. Development in industries like clothes, appliances, health, and personal care, where India’s internet penetration is still far lower than that of competitors like China.
Groceries are expected to be the main engine of e-incremental commerce’s growth, contributing 40% to its GMV (g between 2019 and 2024, the report stated.
As of 2019, India’s grocery business was worth USD 380 billion, or 60% of the whole retail sector.
The online grocery business in India is expected to increase 20 times over the next five years, reaching USD 29 billion in value (5.1% penetration) by 2024. However, online penetration now stands at less than 0.5% (absolute size USD 2 billion), one of the least across categories.
One of the main factors was an increase in Indian customers’ acceptance of online transactions, particularly following COVID-19.
RIL’s entry into the market while utilizing its substantial resources is proving to be great competition. With more than 200+ million users in India, the messaging app WhatsApp offers grocery delivery services.
According to Goldman Sachs, the coronavirus epidemic has accelerated the adoption of several technologies and consumer behaviors, e-commerce being one of them. The initial panic buying, hoarding, and nest-feting out of necessity have evolved into a variety of adaptations that have increased the penetration of e-commerce from 16% of retail spending in the US in the first quarter of 2019 to over 40% in May, driven by a nearly 70% increase year over year.