India increasingly digital: the e-commerce boom

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: it has gone from 38.5 billion dollars in turnover in 2017, to the 64 that should be reached in 2020, to the 200 expected in 2026! Forecasts suggest that By 2034, India will overtake the United States to gain the world's second position in terms of e-commerce market size.

There's a growing interest in international brands and quality foreign products. The ever-growing middle class enjoys a higher spending power 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 seem to trust the Indian distribution system. 

Another interesting aspect concerns industry innovation: in 2019 they were active beyond 4757 start-ups in the e-commerce. Government investment in 5G will give a major boost to digital payment forms 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 for developing successful commercial strategies that take into account the country's enormous cultural diversity and continuous social changes.