India: Increasingly Digital, the E-commerce Boom

But Why invest In this particular area?

With 1.25 billion inhabitants, India is the second most populous country in the world. It's 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 staggering numbers: it went from $38.5 billion billed in 2017, to the 64 expected to be reached in 2020, to the 200 forecast for 2026! Projections suggest that In 2034, India will surpass the United States, claiming the second global position in terms of e-commerce market size.

Is there a Growing interest in international brands and quality foreign products. The increasingly large middle class enjoys a higher purchasing power compared to past years, favoring 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 seemed to distrust the Indian distribution system. 

Another interesting aspect concerns sector innovation: in 2019 there were more than 4757 startup in the e-commerce. Government investments in 5G will strongly boost digital payment methods for which many of these startups produce cutting-edge solutions. 

Companies wishing to expand into India, even with a digital focus, must therefore monitor what is happening overseas. Intercepting trends will be fundamental for developing winning business strategies that take into account the country's enormous cultural diversity and continuous social changes.