Online Grocery: The Newest Trend that Epitomize the Success of Indian Online Retail Sectorby Raj Arora Digital Marketing Professional
If you look around India today, you will come across an amazing growth that has been adorning the retail sector of India for the past five years. This includes the vertical growth in e-commerce stores all over India including the NCR.
Time is ripe now for one to say that the retail sector in India is on the right track now!
Over the last ten years, there has been a perceptible shift towards the organised retail sector. As a matter of fact, according to A T Kearney, the prominent global management consulting company in the US, India is rated to be number four in the list of nations that are considered attractive for retail investments.
Indeed, by the years 2016-17 the retail market is all set to touch more than Rs 45 Lakh Crores expanding as it is at a rate of 15% (Yes Bank-Assocham Study). It is pertinent to study the organised retail as being distinct from the unorganised market. According to the study, the organised retail sector that stood at only 7% of the total retail market just five years ago is all set to grow to more than 10% of the total retail in the next fiscal. If you consider the growth of space allocation, there has been a growth of more than 75% in retail space over the figure only three years ago.
The reasons for this phenomenal growth are several. The rapid increase in the number of middle class families, a youthful population, the increase in the number of nuclear families and rapid urbanization coupled with rising affluence among consumers as well as a palpable desire for purchasing branded goods are some of the reasons.
What is also important is that well known names have stepped into the retail arena. Some of these including Tata, Bharti and Reliance have already invested substantially in the retail market. Similarly, the big names in the e-commerce market include Flipkart, Snapdeal and Amazon as well as Big Basket among others.
The grocery and food sector in the retail market constitutes almost 70% of the total. This market, estimated to be around $490 billion is expected to reach around $865 billion in another 8 years. During this period retail is expected to penetrate by around 30% across diverse segments and categories. India is expected to have more than 90 million middle class households by 2030, an increase of 70 million from today’s figures.
Next time when you shop for online grocery in Noida or in any other tier 1 tier 2 or tier 3 cities in India, you will be amazed to know that you form the count of individuals who, together, within a few years would double the number of citizens in the US to be shopping online!
E-commerce Sector in India: A future marked with promise!
According to the figures available from the Finance Ministry, the e-commerce sector is expected to grow @ 10-15% annually that is at a rate higher than the growth of the GDP, in the years to come. The Minister of State for Finance said, “Our hope is that if we can get 8-9% sustainable GDP growth over the next 10-15 years our economy will become a $ 5 trillion economy.” A comparison of the share of e-commerce orders indicates that Delhi stood below Bangalore with 11.65% share compared to 14.12% of the latter. There is a brighter future for the e-commerce industry in the years to come. When the data of orders placed was analysed it was observed that the southern parts of India buy more than the northern parts. The percentage share indicates more than 40% with South India, around 32% with North India and around 20% with West India while the rest of the country came to around 5%.
Expectations from the E-commerce Sector
A study by Assocham-Deloitte indicates that the e-commerce industry will possibly cross $ 16 billion by the end of this year. Its steady growth has been from $ 4.4 billion five years ago to around $ 13.5 billion last year.
The statistics on the growth of the retail sector and e-commerce sites throughout the country and especially the NCR indicate that the future is going to be very buoyant and rosy.
Created on Dec 31st 1969 18:00. Viewed 0 times.