India’s online commerce sector has witnessed rapid growth in recent years, expanding from a $30 billion market in 2020 to an expected valuation of $300 billion by the end of this decade, according to a report by Bessemer Venture Partners.
In a report titled ‘Click, Watch, Shop: the consumer opportunity in India’, the firm highlights how technology, demographic factors, and supportive policy measures have contributed to the rise of India’s $1 trillion digital opportunity.
The report also points out how the recent rise of quick commerce has introduced a new dimension to the online retail ecosystem, influencing change in how consumers purchase goods. Platforms such as Zepto, Swiggy, Blinkit, and Bigbasket have rushed in to cash in on this changing consumer behaviour.
Additionally, many more startups are coming in the space like Snabbit, Swish, and Slikk to cater to niche needs. Moreover, the rise of direct-to-consumer brands have also catered to an aspirational mass-premium audience, the report noted.
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These consumption habits have also influence their spending patterns. Virtual tipping, UPI autopay and other micro-transactions are expected to touch $1.5 billion by 2029.
Consumer behaviour is not just changing when it comes to making purchases, it is also changing the way they consume content, be it entertainment, education, or gaming. Platforms are quickly adapting to shorter attention spans with quick and engaging content. Over the past five years, short-form video platforms in India have seen a 3.6X growth in daily active users.
Additionally, modern Indian consumers’ are also prioritising what was previously seen as lifestyle spending or what was thought to be “non-essential” spending such as on physical and mental health, financial wellness, and pet care.
“India presents a $1 trillion dollar digital opportunity. The emergence of multiple consumer marketplaces, platforms and new-age brands in the past decade are a testament to the growing aspirations of an emergent India. This makes us exceptionally optimistic about the potential for many more consumer plays to emerge in the coming years,” said Anant Vidur Puri, Partner at Bessemer Venture Partners.
