India's market could surge to $1 trillion by 2025

Recently, Walmart's e-commerce company Flipkart and its payment subsidiary PhonePe announced their first quarter financial results, indicating that Flipkatr and PhonePe continued to grow strongly in India. PhonePe's annualized total payment value run rate increased by more than 150% year-on-year; while Flipkart dominated the Indian consumer market, with a surge in the number of monthly active customers and users.

For the quarter, Walmart reported total revenue of $138.3 billion, an increase of $3.7 billion, or 2.7%. The company said the benefits of rebalancing its strategic portfolio to focus on high-growth markets were becoming increasingly evident in revenue growth.

Walmart CEO Doug McMillon said: "India is a diversified market. Unlike other countries, it is a largely unorganized retail market. Retail accounts for 88% of the entire Indian market, while the unorganized market accounts for the rest. So we must think about the industry and business layout according to India's national conditions, and we must abide by India's business rules."

At the same time, McMillon pointed out that driven by socio-demographic and economic factors such as urbanization, income growth and the increase in nuclear families, India's retail market is expected to grow to $1 trillion by 2025. India is one of the three major markets along with China and the United States, with an astonishing number of users and great potential for e-commerce development.

At present, the main advantages of the development of India's e-commerce market are as follows:

1. There is a large investment space and the retail industry has excellent development prospects.

2. India is the world's second most populous country with a high consumption base.

3. Currently, India has nearly 600 million middle-class people. In addition, the increasing urbanization, rising household income, rural consumer connectivity and increased consumer spending have led to a continuous rise in India's consumption capacity.

Many e-commerce platforms have set their sights on India. Whoever can grasp the diversity of the Indian market and the consumer psychology and habits of Indians will be able to occupy the Indian market. It seems that the e-commerce circle is about to "move" again.

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