The year 2020 has been a landmark year for India’s consumer internet economy and the country’s GMV (gross merchandise value) grew to $65 billion in the year and that growth is now creating impact on the overall economy with almost 4.6% of total private consumption happening via the internet, said Anil Kumar, co-founder and CEO of RedSeer Consulting.
“We expect this to accelerate further in 2021, driven by massive growth in consumer adoption and satisfaction in 2020 across sectors with India Internet expected to cross triple digits GMV for the first time in 2021 and eventually become $250 billion scale and 10% of private consumption in 2025,’’ he said.
According to Mrigank Gutgutia, director at RedSeer, last year brought in a 40% growth in e-tailing, which resulted in a multi-fold increase in online penetration across categories. Fashion and electronics brands have been strong beneficiaries of the digital, where fashion subcategories like footwear and accessories have seen maximum digitisation.
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“Most importantly, consumers have been shopping for product or service quality of online retailers rather than price. For instance; the eGrocery market grew 60% during calendar 2020 and is expected to grow 41-49% by CY25,’’ added Mr. Gutgutia.