According to a survey released on Thursday, India’s online commerce industry is predicted to grow from a base of $30 billion in 2020 to $300 billion by the end of the decade in 2030, contributing to a $1 trillion digital opportunity in the nation.
According to Bessemer Venture Partners’ research, this shows it is no more a marginal phenomena serving a small section but has solidified itself as a dominant force within the Indian retail environment for a sizable and expanding portion of the population.
“India offers a digital opportunity worth $1 trillion.” The rise of several consumer markets, platforms, and cutting-edge businesses over the last ten years is evidence of India’s evolving ambitions. We are quite hopeful that many more consumer plays will surface in the upcoming years as a result of this,” said Partner Anant Vidur Puri.
The emergence of new generation consumer enterprises has been made possible by a tailwind trinity of developments, including changing demographics, internet penetration, and policy changes.
According to the survey, fresh businesses will succeed in the Indian market in the future due to the development of content platforms, commerce marketplaces, and shifting customer preferences.
In recent years, the rapidly growing online commerce industry in India has experienced a remarkable surge in growth.
The way consumers obtain items has also been further revolutionized by the recent emergence of rapid commerce, or q-commerce, which has added a new dimension to the online retail ecosystem.
This trend has been led by platforms like BigBasket, Blinkit, Swiggy, and Zepto, which show how profitable and popular quick delivery services are with customers. With firms like Snabbit, Swish, and Slikk meeting specialized needs, this market is witnessing the emergence of the additional trend of verticalized q-commerce.
Last but not least, D2C companies are rapidly serving an aspirational mass-premium market, which is defined by a desire for more recent, more affordable, and higher-quality goods.
The varied tastes of Indian customers for gaming, education, and entertainment are fueling a content revolution in the country. According to the report, “user engagement is rapid, facilitated by frictionless microtransactions or autopay-led subscriptions. Users are characterized by short attention spans and a multitude of accessible platforms across interests, languages, and budgets.”
With brief and interesting content, platforms are adjusting to users’ shortened attention spans. In India, short-form video platforms have seen a 3.6X increase in daily active users over the last five years, putting them in competition with more popular digital platforms.
Additionally, the growth of UPI-enabled microtransactions, which enables businesses to experiment with a variety of revenue models beyond advertisements, is exemplified by the rise of virtual tipping, UPI autopay, and other microtransactions, which are predicted to reach $1.5 billion by 2029.
Spending on wellness services, workout equipment, organic food, protein, and preventive healthcare has increased.
According to the survey, the category of health-focused food and beverage (F&B) has grown from 11% to 16% of F&B spending and is predicted to keep growing as brands have been fast to follow suit.
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