NEW DELHI : Visakhapatnam, Ghaziabad and Faridabad are rising as India’s latest new e-commerce hotspots, in accordance with a brand new report evaluating the potential of 100 main cities for digital commerce.
Bengaluru, Mumbai and Delhi, as anticipated, prime the listing, in accordance with the India Digital Commerce Index report by consulting agency Kearney and e-commerce market Meesho.
“The second cohort of cities consists of the key tier 1 cities of Chennai, Hyderabad, Kolkata, Ahmedabad, and Pune,” the report acknowledged, including that India’s e-commerce market is anticipated to be valued at roughly $200 billion by 2026.
“As a rising hotspot, Visakhapatnam is a strategic focus for e-commerce behemoths and is near success facilities. Ghaziabad and Faridabad are additionally within the prime 20, thanks partly to their proximity to the nationwide capital,” it added. “… Lucknow can be one of many prime cities, with its digitally accustomed inhabitants.”
Kearney additionally recognized markets which can be prone to present better affinity for e-commerce, amongst them the northeastern states and the Hindi heartland.
Sometimes under-penetrated by offline manufacturers, these areas present heightened e-commerce potential that’s prone to present disproportionate progress outpacing that of offline retail, in accordance with the report.
As an illustration, within the Hindi heartland area cities akin to Varanasi, Allahabad, Gorakhpur, and Noida in Uttar Pradesh; Jamshedpur and Ranchi in Jharkhand; and Cuttack in Odisha reveal an growing urge for food for e-commerce, the report stated.
“The speedy unlock of latest buyer segments and rising geographies is an indicator of the strong progress of the Indian e-commerce area,” stated Karan Dhall, accomplice, client and retail follow, at Kearney. “Underpenetrated areas just like the northeast and the Hindi heartland are coming into the fold and the feminine e-shopper base can be increasing quickly.”
The index additionally revealed that completely different cities exhibit various behaviour in relation to classes. Whereas Bengaluru is the highest metropolis total on the index, Mumbai outperformed it in meals and grocery in addition to electronics purchases. Chennai and Hyderabad outpaced Delhi in attire, equipment, and residential furnishings and furnishings gross sales.
India’s e-commerce market touched $75-80 billion in 2022 and is anticipated to develop 20% year-on-year until 2030, in accordance with the report. This progress, it stated, can be led by elevated penetration in current markets and new buyer segments, together with consumers from tier 3 and tier 4 cities and rural areas.
“Along with one-time buys akin to electronics, dwelling, and kitchen, digital commerce is anticipated to increase in on a regular basis classes akin to magnificence and private care, attire, equipment, and jewellery over the subsequent few years, primarily pushed by progress within the feminine client base and deeper penetration in rural India,” the report stated.
Unlock a world of Advantages! From insightful newsletters to real-time inventory monitoring, breaking information and a personalised newsfeed – it is all right here, only a click on away! Login Now!
Obtain The Mint Information App to get Day by day Market Updates.
Extra
Much less
Printed: 11 Jan 2024, 04:46 PM IST
Supply: Live Mint