RBETA 2024 commemorates India's e-commerce expansion

E-commerce expansion: India's e-commerce sector is experiencing a strong upswing, driven by a confluence of factors propelling its growth trajectory. With a population of over 900 million internet users, our nation stands as the second-largest internet market globally. 

According to the IBEF E-Commerce Industry Report, the Indian e-commerce industry is projected to reach $300 billion by 2030 while the e-retail market in India will surpass $160 billion by 2028.

The industry growth is anticipated due to the widespread adoption of smartphones, rising affluence, and the availability of low-cost data, all contributing to the impetus for e-retail expansion.

To commemorate the strides and forward-looking initiatives within India's e-commerce and retail sector, Republic Business is proud to unveil the debut edition of the Republic Business Emerging Technology Awards 2024 (RBETA 2024).

RBETA 2024 sets out to commend leaders who have reshaped India’s e-commerce industry with steadfast commitment and inventive strategies.  The event serves as a conduit to acknowledge and applaud the individuals and enterprises spearheading transformative changes in India’s booming retail. 

Online shopping becomes accessible to all 

A major factor driving this growth is the comprehensive reach of e-commerce across the nation with close to 100 per cent pin codes being accessible to e-commerce delivery. 

According to Invest India, more than 60 per cent of transactions and orders originate from tier-two cities and smaller towns, indicating a democratisation of e-commerce beyond metropolitan hubs. The emerging markets now account for nearly half of all shoppers and contribute three out of every five orders for leading e-retail platforms.

Contrary to conventional notions,  data reveals that the average selling price (ASP) in tier-2 and smaller towns is only marginally lower than in tier-1/metro cities. This trend underlines the strengthening purchasing power in tier-2 cities and the evolving consumer preferences in smaller cities.

Diversification of services 

Dominated by electronics and apparel, which jointly constitute nearly 70 per cent of the e-commerce market by transaction value, the sector is witnessing a diversification into burgeoning categories such as ed-tech, hyperlocal services, and food-tech. Home decor, cosmetics, baby products, smartphones, LED lights, Fitness equipment, snacks, and Jewellery are some of the other key categories that are driving the sales volume for India’s online retail. 

The landscape received a major boost with the launch of the Open Network for Digital Commerce (ONDC) by the Government of India in 2022. Designed to provide equal opportunities for Micro, Small, and Medium Enterprises (MSMEs) to thrive in digital commerce, ONDC aims to democratize e-commerce and foster inclusive growth. This initiative aligns with the broader vision of leveraging digital platforms to empower grassroots businesses and bridge the digital divide.

In 2022 alone, Indian e-commerce and consumer internet companies garnered a staggering $15.4 billion in Private Equity (PE) and Venture Capital (VC) funding, marking a twofold increase from the $8.2 billion raised in 2020, according to Invest India.

The influx of capital not only underlines investor confidence but also signifies the sector's pivotal role in driving economic growth and innovation.

As India continues its digital transformation journey, the e-commerce sector stands poised for further expansion and innovation. With a burgeoning user base, evolving consumer preferences, and a supportive regulatory environment, the stage is set for the continued ascent of India's e-commerce landscape on the global stage.

To learn more about the Republic Business Emerging Tech Awards 2024 click here. 

To be a part of RBETA 2024, click here.