A recent report by Deloitte India predicts that India’s online retail market will reach a size of US$ 325 billion by 2030, up from US$ 70 billion in 2022. The rapid expansion of e-commerce in tier-2 and tier-3 cities is expected to be the primary driver of this growth.
The report, titled ‘Future of Retail,’ suggests that online retail penetration will outpace offline retail by 2.5 times in the next decade. Tier-2 and tier-3 cities accounted for over 60% of all orders in 2022, with significant increases in order volume. The ease of ordering and returns, along with a robust logistics infrastructure, has played a crucial role in the surge of online retail.
The report also highlights India’s 220 million technologically proficient online customers as a key factor in the expansion of e-commerce. Over the past five years, the sector has received a total of US$ 23 billion in private equity and venture capital investments. With a focus on omnichannel retail strategies and the integration of offline and online platforms, online sales are poised to surpass organized retail.
The report also discusses the impact of the Metaverse, experiential retail, augmented reality (AR), and virtual reality (VR) on customer relationships, emphasizing the importance of creating attractive and interactive shopping environments to enhance customer engagement, satisfaction, and revenues.
