Electronic Commerce or E-commerce is the purchasing, selling, marketing, and services via electronic networks including the Internet and other computer networks. For businesses, e-commerce acts as a powerful enabler, offering access to a vast and diverse consumer base. It provides cost-effective ways to market products and services while facilitating expansion into new categories and regions. The digital marketplace removes many traditional barriers to entry, empowering businesses to scale operations and cater to customers across geographical boundaries. Consumers, on the other hand, benefit from the unparalleled convenience and accessibility that e-commerce platforms provide. With just a few clicks, shoppers can compare prices, explore a wide variety of products, and make purchases without leaving their homes. These platforms also deliver significant cost advantages by offering competitive pricing, discounts, and deals, allowing customers to save on their purchases.
E-commerce has significantly changed Indian consumers’ shopping habits in recent years, driven by greater access to the Internet, widespread smartphone adoption, growing digital literacy, and government initiatives promoting digitization.
- Retail Sector Growth: According to Kearney Research, India’s retail market is projected to grow at a 9% annual rate, increasing from $779 billion in 2019 to $1,407 billion by 2026. India’s internet economy is growing at an unprecedented rate, with projections suggesting it could reach a staggering $1 trillion by 2030. At the heart of this digital revolution lies the e-commerce sector, which is anticipated to expand to $325 billion by the same year. This rapid growth is unlocking immense opportunities for both businesses and consumers, transforming how products are sold and bought across the country.
- Evolving Consumer Base: Kearney Research highlights the shift in India’s retail landscape, as value-conscious shoppers increasingly influence e-commerce. These buyers prioritize affordable yet high-quality, durable, trendy products, reshaping the online marketplace. Earlier, the e-commerce space catered primarily to 50–60 million urban, high-income customers with clear brand preferences.
- The Impact of 4G and Internet Growth: The 4G revolution after 2016 dramatically increased Internet users from 100 million to 500 million within four years, altering both demand and supply dynamics. Online shopping expanded to smaller towns and middle- to low-income groups in urban areas, resulting in a broader customer base.
- Rising Internet Penetration: With over 600 million Internet users, 350 million smartphone users, and 300 million social media users in India today, the country is poised for even greater digital expansion. Industry experts predict the number of Internet users in India will reach nearly 1 billion by 2030, further fueling the growth of e-commerce platforms like Snapdeal. As a result, India’s e-retail market is poised to touch almost 350 million shoppers by 2025 –while online GMV (Gross Merchandise Value) will range between $100 and $120 billion.
Kunal’s Vision For The Next Decade
Under Kunal’s leadership, Snapdeal has been instrumental in shaping the e-commerce landscape in India. By focusing on value-conscious consumers and collaborating with small and medium-sized businesses, the platform has fueled innovation and created employment opportunities nationwide. He remains optimistic about the future of startups and says that the next 5 years will see a ‘Wave of profitable new age companies going public’. The new Shark Tank India judge said that the venture capital market and the startup ecosystem are heading towards an optimistic zone and the broader outlook looks positive, “So my outlook for venture capital is the same as my outlook for the startup ecosystem, which is the same as my outlook for India, right, which is extremely optimistic and positive,” he said. “Over the last 10 years, it has just changed dramatically because now there’s so many role models taken for,” Bahl said.
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