By the end of 2018 Indian e-commerce market is likely to go up by as much as 60% to $28-30 billion in GMV, claimed a report released by the RedSeer Management Consulting, a market research and consulting firm. GMV refers to the value of goods sold on a site after discounts.
The e-retail noted 23 per cent growth to $17.8 billion in 2017 as compared to $14.5 billion in gross merchandise value (GMV) in 2016. Indian e-retailer Flipkart and India unit of Amazon remained major driver in growth of e-commerce in India.
“The market showed very strong growth in the second half of the year and we expect that to continue in 2018,”RedSeer chief executive Anil Kumar was quoted as saying.
“It wasn’t just that sale months were (better than the year-ago period), even the non-sale months in the second half were much higher than H1. So there are enough signs that the market should see very high growth next year.”
Earlier it was anticipated that e-retail market would become $60 billion to more than $100 billion by 2020. But hope got dashed when its growth remained less than 15 per cent due to less discount and advertising by Flipkart and Snapdeal.
Later in 2017, heavy discount offered by Flipkart, Amazon and Paytm contributed significantly while writing growth story of e-commerce in India.
Flipkart and Amazon are reportedly planning to bring in strategy eyeing majorly on smaller cities and towns. Recently consumers from tier II and III cities contributed majorly in growth of Myntra during its recent End Of Reason Sale.