E-tail may beat modern trade by FY26: Report – Times of India
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NEW DELHI: Covid has led to a 12-month acceleration of e-retail penetration in India and could lead to the segment outgrowing modern trade by FY26.
For the year ending March 2021, while the overall retail market shrunk by 5% along with a 7.3% contraction in GDP due to sustained lockdowns across India, the e-retail market surged by 25% to reach $38 billion.
The transformation was led by Covid that provided a strong boost to India’s e-retail penetration to reach 4.6% in FY21 compared to 3.5% in the previous year, showed data from the latest report by Bain & Company.
For the year ending March 2021, while the overall retail market shrunk by 5% along with a 7.3% contraction in GDP due to sustained lockdowns across India, the e-retail market surged by 25% to reach $38 billion.
The transformation was led by Covid that provided a strong boost to India’s e-retail penetration to reach 4.6% in FY21 compared to 3.5% in the previous year, showed data from the latest report by Bain & Company.
With the world’s third-largest online shopper base — 140 million e-retail shoppers in 2020, behind only the US and China — the domestic e-retail market is expected to grow 25-30% annually over the next five years to reach $120-140 billion by FY26, higher than modern trade.
Small-town India is expected to fuel this growth, accounting for four of every five new shoppers. In addition, women and older shoppers will continue to increase the e-retail base.
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