Flipkart Retains Top Slot As India's E-Commerce Market Hits $60 Billion: Redseer
Despite slower annual growth in FY23, e-commerce is 2.5 times the pre-Covid levels.
Indians ordered merchandise worth $60 billion in FY23 online, according to a Redseer report, even as e-commerce growth faltered after pandemic-related restrictions were lifted.
While online buying momentum has reduced, growth remains healthy. "Online retailers' highly relevant and affordable supply along with standardised experience on the platforms, make e-commerce attractive to shoppers. D2C brand growth has also spurred traditional players to take the digital route," Redseer said in a report released on May 18. "Despite slower annual growth of 22% in FY23, e-tailing today is 2.5 times of pre-Covid levels."
In the last three years, new users who are willing to try e-commerce have increased and non-metro users account for a large share of the total user base in FY23, the report said.
The monthly user base of e-commerce shoppers is also larger than ever before. "Monthly shopper base, which stood at 6.5 crore in FY23, is now 31% of the annual e-tailing shopper base–the same metric which was just 23% in pre-pandemic era. This goes to show that e-tailing user base is maturing and customers now shop online more frequently across a range of categories."
Category-wise, fashion has surpassed electronics to be number 1. "In contrast to the pre-Covid levels, e-tailing market has grown deeper across categories, with more users making purchases online. Although mobile phones dominated the category divide in FY19, fashion is now the single largest category with 27% share whereas beauty and personal care, grocery and home categories are the fastest growing."
Redseer found that among leading players in e-commerce, Flipkart has been resilient in terms of market share and has been able to protect its turf with a 48% market share in FY23. That means the remaining 52% market share lies with other players such as Amazon, Meesho, Snapdeal and Nykaa, among others.
It has also grown faster than the industry in the recent quarter, owing to a large selection, varied affordability constructs and understanding of the needs of the vast e-tailing shopper base in India, including those from Tier 2+ cities.