The e-commerce market in India was valued at INR 4,947.60 Bn in 2019 and is expected to reach INR 8,641.10 Bn by 2025, expanding at a compound annual growth rate (CAGR) of ~14.42% during the 20202025 period. Affordable smartphones, increased penetration of the internet, and effective payment channels such as mobile wallets, coupled with streamlined logistics infrastructure are the key factors propelling the growth of the e-commerce market. The Indian government leverages e-commerce digital platforms to transform and organize traditional offline markets. Market segment insights: Based on product categories, the e-commerce market can be segmented into online travel, retail, financial services, matrimony and classified, and other services. In 2019, the online travel segment held the largest market share (~44.88%), followed by the retail, financial, other services, and matrimonial and classified segments. Improved air and rail connectivity between tier I and tier II cities has increased domestic travel bookings, primarily through online platforms. However, in the wake of the pandemic, countries across the world have been compelled to close their international borders; domestic and international flights were canceled to curb the spread of the virus. Online travel aggregators reported no business in the first quarter of FY 2021. After travel restrictions were eased and economic activities picked up pace, e-travel aggregators began focusing on domestic offering such as staycations and workcations. This is expected to compensate for the losses in the travel business. By 2025, the online retail segment is expected to dominate the e-commerce market and reach a value of INR 3,083.22 Bn, expanding at a CAGR of ~7.50%. The segment is being driven by the increased penetration of Internet-enabled devices, ease of online shopping, innovative payment options, cashbacks, and discounts, as well as the rapidly evolving needs of customers. COVID-19 impact assessment: The pandemic and the subsequent lockdown have dealt a severe blow to the e-commerce market. However, the market is likely to bounce back, following an initial loss, since there are significant long-term growth opportunities in all its business segments. Since March 22, 2020, the e-commerce industry in the country has been experiencing disruption and incurred losses of more than INR 27.67 Bn in a week. The sector has been affected on the demand and supply sides due to a halt in all the economic activities. Online shopping experienced a setback due to the restrictions on physical movement and the shutdown of businesses, thus severely impacting the supply chain. About 8% of the modern retail trade could function since the sale of non-essential goods was prohibited across the country. Therefore, there had been a steady decline in the sale of FMCGs. However, the e-grocery segment has experienced rapid development amid the pandemic. Moreover, the personal hygiene and care segment may experience steady growth; it accounts for ~4.5% of the total GMV of the e-commerce platforms. Competitive insights: E-commerce companies are incorporating various technologies such as voice recognition, virtual and augmented reality (VR and AR), fintech, artificial intelligence (AI) and machine learning (ML) to attract customers and compete with other players. Companies such as Amazon, Flipkart, Goibibo, Ola, Zomato and Ixigo have incorporated voice assistants for assisting customers with their queries, thereby improving customers satisfaction. E-commerce companies have also incorporated fintech-based payment platforms such as PayPal, Apple Pay, Google Pay, and Amazon Pay to offer secure and efficient online payment methods to consumers. Companies covered Infibeam Avenues Ltd. Info Edge (India) Ltd. Thomas Cook (India) Ltd. BigTree Entertainment Pvt. Ltd. Flipkart Internet Pvt. Ltd. Jasper Infotech Pvt. Ltd. MakeMyTrip (India) Pvt. Ltd. One97 Communications Ltd. People Interactive (India) Pvt. Ltd. Amazon India Ltd.
Table of Contents
Chapter 1: Executive summary Chapter 2: Socio-economic indicators Chapter 3: Introduction 3.1. Market definition and structure 3.2. Business models Chapter 4: Market overview 4.1. E-commerce market size and growth forecast (2019 2025e) 4.1.1. Current market scenario Chapter 5: Market segmentation 5.1. India e-commerce market segmentation 5.2. Online travel market overview 5.2.1. Online travel services market size and growth forecast (2019 2025e) 5.2.2. Online travel market share based on type (2020e) 5.3. Online retail market overview 5.3.1. Online retail market size and growth forecast (2019 2025e) 5.4. Online financial services market overview 5.4.1. Online financial services market size and growth forecast (2019 2025e) 5.5. Online matrimony and classified market overview 5.5.1. Online matrimony and classified market size and growth forecast (2019 2025e) 5.6. Other online services market overview 5.6.1. Other online services market size and growth forecast (2019 2025e) Chapter 6: Covid-19 impact assessment 6.1. Current market scenario 6.2. Segment-wise impact assessment Chapter 7: Government initiatives 7.1. Initiatives by the Government of India, impacting the e-commerce industry Chapter 8: Market influencers 8.1. Market drivers 8.2. Market challenges Chapter 9: Investment scenario 9.1. Recent investment scenario Chapter 10: Competitive landscape 10.1. Infibeam Avenues Ltd. 10.1.1. Company information 10.1.2. Business description 10.1.3. Products/services 10.1.4. Key people 10.1.5. Financial snapshot 10.1.6. Key ratios 10.1.7. Key financial performance indicators 10.1.8. Key business segments 10.1.9. Key geographical segments Note: Financial information covered for public companies only 10.2. Info Edge (India) Ltd. 10.3. Thomas Cook (India) Ltd. 10.4. BigTree Entertainment Pvt. Ltd. 10.5. Flipkart Internet Pvt. Ltd. 10.6. Jasper Infotech Pvt. Ltd. 10.7. MakeMyTrip (India) Pvt. Ltd. 10.8. One97 Communications Ltd. 10.9. People Interactive (India) Pvt. Ltd. 10.10. Amazon India Ltd. Chapter 11: Website benchmarking Chapter 12: Recent developments 12.1. Key recent developments in the market Chapter 13: Appendix 13.1. Research methodology 13.2. About Netscribes 13.3. Disclaimer
This research report involves complete picture of the market with the help of in-depth secondary and primary research. This research report studies several aspects of the market and analyze vital industry influencers. Extensive secondary research has been conducted using paid as well as open access data sources in order to gather information on the market and parent market. These key findings are then analyzed and validated with the help of in-house data models and primary discussions with key industry participants and experts across the value chain
Research Tools and Models
- Top-Down Approach and Bottom-Up Approach
- QFD Modeling for Market Size and Share Calculation
- Regression, Variable and Impact Analysis
- Penetration Modeling
- It comprises briefing about market dynamics and business opportunities and strategies.
- Finally, all the research findings are validated through interviews with in-house industry experts, freelance consultants and key opinion leaders etc.
It involves various mathematical tools, models, projection, and sampling techniques. It involves following steps:
- Identification of market variables and market size derivation
- Assessment of future prospects, opportunities and market penetration rates by analyzing product commercialization, regional trends etc.
- Evaluation historical market trends and derivation of present and future year-on-year growth trends