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India e-tailing market reached $60 bn in GMV in FY23

IANS | May 19, 2023 10:43 AM

NEW DELHI: The e-tailing market in India reached $60 billion in gross merchandise value (GMV) in FY23, a 22 per cent steady growth, a report showed on Friday.

With 210 million annual shoppers, ads monetisation contributed $1.2 billion in revenue for Indian e-tailers in FY23, growing at 37 per cent year-on-year, according to Redseer Strategy Consultants.

"Despite losing momentum, e-tailing today is 2.5 times of pre-Covid levels and is performing much better than overall retail consumption, which has been tepid in the recent quarters due to inflation concerns, " said Mrigank Gutgutia, a partner at Redseer.

E-tailing in India is gaining popularity with the increased proliferation of smartphones and the internet.

Direct-2-consumer brand growth has also spurred traditional players to take the digital route offering a competitive shopping experience and encouraging consumers to shop online.

Monthly shopper base (MTU) which stood at 65 million in FY23 is now 31 per cent of the annual e-tailing shopper base -- the same metric which was just 23 per cent 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, " the report noted.

"Strategic partnerships of e-commerce platforms with global and Indian brands along with a change in shopper mix and an increasing share of women shoppers has resulted in an explosion of fashion sales, " Gutgutia said.

With 1.2 times better take rates, the revenue from product sales across India e-tailing has grown 3 times from $2 billion in FY19 to $6 billion in FY23.

"Ad revenue is growing significantly faster than the overall digital ads market reaching a 15 per cent share of the digital ads market in FY23, " the report mentioned.

"Flipkart Group has been resilient in terms of market share in the last few years (48 per cent in FY23) despite growing competition -- and is especially growing much faster than industry in recent quarters, " the report added.

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