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India increasingly digital: the e-commerce boom

India sempre più Digital: il boom dell’e-commerce

But why invest in this particular industry?

With 1.25 billion inhabitants, India is the second most populous state in the world. And also an extremely young country: 90% of online shoppers are under 35 and spend around 16% of their income on e-commerce channels. It is also expected that in 2021 Internet users in India will reach 829 million.

The growth trend of the sector provides mind-boggling numbers: we have gone from 38.5 billion dollars invoiced in 2017, to the 64 that should be reached in 2020, to the 200 expected in 2026! Forecasts suggest that In 2034, India will overtake the United States and become the second largest e-commerce market in the world.

There's a growing interest in international brands and quality foreign products. The increasingly large middle class enjoys a higher spending capacity than in past years, favoring new consumption patterns.

Continuous improvement of the logistics system, not only in big cities but even in smaller cities, will no longer be considered a constraint for foreign investors who previously did not appear to trust the Indian distribution system. 

Another interesting aspect concerns innovation in the sector: in 2019 they were active beyond 4757 e-startupscommerce. Government investment in 5G will give a major boost to forms of digital payment for which many of these start-ups produce cutting-edge solutions. 

Companies wishing to expand in India also from a digital perspective must therefore monitor what is happening overseas. Intercepting trends will be essential to develop winning commercial strategies that take into account the country's enormous cultural diversity and continuous social changes.

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