According to a joint report by e-commerce facilitator Shiprocket and ONDC, consumer spending in India is poised to surpass $4 trillion by 2030, propelled by a robust compound annual growth rate (CAGR) of 10%.
The report, titled 'eCommerce In The New Bharat And Its Future,' was unveiled during Shiprocket's esteemed SHIVIR summit in 2023.
It highlights pivotal factors including technological advancements in consumer goods, escalated internet penetration, a thriving local consumer ecosystem, evolving expenditure trends, rising participation of the female workforce, and supportive policies like Make in India and Aatmanirbhar Bharat.
The report underscores the influential role of India's youthful demographic, with a median age of 31 by 2030, in driving this growth trajectory. The study accentuates the substantial potential in catering to millennials and Gen Z, who are projected to comprise 77% of India's populace by 2030.
Categories such as food, housing, apparel, transportation, communication, and personal care are anticipated to witness a twofold surge in spending by 2030. E-commerce is positioned as a pivotal catalyst for this burgeoning consumer outlay, as nearly 80% of consumers now prefer online marketplaces.
The report emphasizes that a substantial 76% of consumers opt for prepayment. Notably, UPI emerges as the favored choice (57%), followed by credit cards (31%), and other alternatives like wallets, net banking, and debit cards (12%). The report envisions UPI's popularity leading to a noteworthy 34% decline in cash transactions and an impressive 88% surge in digital payments by 2026.
Currently, fashion and lifestyle dominate online shopping trends, accounting for 48% of purchases, trailed by electronics (32%) and groceries (30%). The report unveils that over 50% of Indian consumers prioritize product quality when making online purchase decisions.
While the potential for expansion is substantial, the report reveals that a staggering 72% of Indian brands have yet to explore international sales, presenting significant growth opportunities. It further notes that even though 38% of brands are attracted to overseas markets, an equal percentage remain uncertain about the process.
Both local and international consumers express keen interest in acquiring Indian products. Among brands, 40% believe in harnessing the collective strength of multiple sales channels for optimal results, rather than relying solely on one platform. Meanwhile, 38% identify efficient logistics as the most challenging aspect, spanning both domestic and international operations.
