India's e-commerce penetration rate may grow by more than 10%, with online fashion becoming the biggest driving force

The report shows that India's e-commerce industry is expected to grow by 40% in 2020 , compared with 23% in 2019. In terms of growth rate , the country's e-commerce sector ranks ninth in the world.

Around the festive season in the second half of the year , companies such as Amazon , Flipkart , Myntra and Snapdeal generated $3.1 billion in sales in the first four to five days of the festive season sales , and these increased orders came not only from large urban areas .

Data shows that 70% of orders during Diwali came from Tier II and Tier III cities . The country's e-commerce penetration rate is expected to grow from the current 4% to 5% and even exceed 10% in the next five years .

Partnerships between online delivery giants and fast-moving consumer goods companies, including food brands , have become a trend during the pandemic . Similarly, collaborations between local food businesses and local e-commerce startups on delivery have also been eye-catching .

Under the epidemic, food delivery applications have exploded. Highly disinfected kitchen environments , double-layer packaging of food , delivery personnel equipped with safety equipment, and contactless services will provide consumers with the safest way .

According to market research, electronics and accessories (39%) have become the most popular product category in terms of average spending by online shoppers, followed by mobile phones and accessories (12%) , fashion products including clothing, footwear and accessories ( 10%) , and large appliances ( 9%) .

However, a management consultancy white paper shows that food, groceries, consumer electronics and apparel will be the top e-commerce product categories contributing to sales in the next five years. Then, according to a report by Goldman Sachs, online grocery and fashion/apparel will be the biggest drivers of incremental e-commerce growth in the country.

In the past few months, foreign social media giants have made significant investments in domestic giants such as Reliance Industries, which could allow the latter to play a bigger role in the e-commerce market.

India

E-commerce