E-commerce retail market may move $100-billion mark by 2024

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The e-commerce retail market, which stood at USD 30 billion in 2019, is expected to move the USD 100-billion mark by 2024, pushed by an increasing set of suppliers selling online and change in buying behavior of customers, among others  

The upward push of online fresh groceries income along with growing numbers of organized food delivery companies getting into this space may want to propel category boom by using five times in the subsequent five years, in line with the paper collectively prepared with the aid of global professional services firm Alvarez & Marsal (A&M) India and CII Institute of Logistics.  

 According to the white paper, titled ‘Enabling the next wave of e-commerce in India through supply chain innovation’, some of the key evolving models for e-commerce consist of an order to shop for clothing; dark store for FMCG/ grocery and meat/pharmaceuticals; store to customer deliveries for FMCG grocery and omnichannel presence for outlets.  

 The Indian retail landscape has seen a momentous change over the last 10 years with the overall enterprise developing to USD 915 billion in 2019, it said. The paper introduced that e-commerce retail, which accounted for less than USD 1 billion in 2010, has grown to more than USD 30 billion in 2019.  

 It attributed the boom of e-commerce over the last decade to internet penetration, smartphone adoption, and category growth. The paper additionally stated categories like electronics have been led by the horizontal marketplaces, while penetration in groceries, furniture, pharmacy, and cosmetics have been led with the aid of specialists.  

 E-commerce retail (B2C) market to be more than a USD 100 billion opportunities by 2024, that with just around 3 percent penetration of e-commerce in 2019, the market keeps riding its next wave of boom given the big headroom available.  

 E-commerce penetration in retail in mature markets just like the US and China has reached around 15 percent and around 20 percent, respectively, by 2019; while in India, it can attain around 6 percent by 2024, it added.  

 A&M India Managing Director Manish Saigal said that while the majority of e-commerce volumes come from top-30 cities, over 60 percent of e-commerce volumes are likely to come back from tier-II and tier-III cities in the next five years, it’s far vital for e-commerce businesses to construct their seller base and delivery reach in smaller towns.  

 Operating models for e-commerce will evolve depending on different factors which include customer necessities and converting buying behaviors and the availability of appropriate technology and logistics partners. The subsequent wave of anticipated online retail growth drivers for categories such as fast-moving consumer goods (FMCG), groceries and apparel will be via social media, chat engines, and artificial intelligence bots.  

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