New Delhi: Covid has led to a 12-month acceleration of e-retail penetration in India and can lead to the segment more than modern trade by FY26.
For the end of March 2021, while the retail market as a whole shrank by 5% along with a contraction of 7.3% in GDP due to sustainable locking throughout India, the e-retail market jumped by 25% to reach $ 38 billion.
This transformation was led by Covid which provided a strong boost for the penetration of India’s e-retail to reach 4.6% in FY21 compared to 3.5% in the previous year, showing data from the latest reports by Bain & Company.
With the third largest online shopping base in the world – 140 million e-retail buyers in 2020, behind only US and China – Domestic e-Retail markets are expected to grow 25-30% every year for the next five years to reach $ 120-140 billion with FY26, higher than modern trade.
The small city of India is expected to trigger this growth, accounts for four of every five new buyers.
In addition, women and older buyers will continue to add e-retail bases.