India increasingly Digital: the boom in e-commerce

But why invest In this particular area?

With a population of 1.25 billion, India is the second most populous state in the world. It is also an extremely young country: 90% of online shoppers are under 35 years old and spend about 16% of income on purchases on e-commerce channels. In addition, it is expected that in 2021 Internet users in India will reach 829 million.

The industry's growth trend provides mind-boggling numbers: it went from $38.5 billion billed in 2017, to $64 expected to be reached in 2020, to a projected $200 in 2026! The forecasts suggest that in 2034, India will surpass the United States by gaining the second largest e-commerce market in the world.

There is a Growing interest in international brands and quality foreign products. The growing middle class enjoys a higher spending capacity than in past years, fostering New consumption patterns.

The continuous improvement of the logistics system, not only in large metropolises but even in smaller cities, will no longer be considered a constraint for foreign investors who previously did not seem to trust the Indian distribution system. 

Another interesting aspect concerns industry innovation: in 2019 there were more than 4757 start-ups in the e-commerce. The government's investment in 5G will give a major boost to digital forms of payment for which many of these start-ups are producing cutting-edge solutions. 

Companies that also wish to expand into India digitally must therefore monitor what is happening overseas. Intercepting trends will be key to devising winning business strategies that take into account the country's enormous cultural diversity and ongoing social changes.