India (Commonwealth Union)_ Redseer predicts that Indian e-commerce will develop at a compound annual growth rate (CAGR) of 27% to reach $163 billion by 2026, nearly three times the growth of the whole retail industry. This is mainly due to the rapid growth of online shopping. The predicted size of the e-commerce market in 2022 was $63 billion. The report further stated that by 2026, online grocery sales will account for over 25 percent of sales in the majority of key retail categories, highlighting the importance of digital leadership in the future.
Similarly, digital-first businesses now account for over 25% of all online sales, demonstrating the increasing significance of a digital-first strategy. These digital-first firms are also expanding offline, posing a threat to the traditional incumbents in their territory. In addition, 75 digital disruptors were identified across the following three categories: electronics & appliances, fashion & home, and groceries & personal care, for the Indian e-commerce sector in 2022.
According to Anil Kumar, CEO and founder of Redseer, “With digital-first brands accounting for 25 percent of online sales and expanding their footprint in the offline market, traditional brands have newer challenges to conquer. Legacy companies need to focus on building digital capabilities and adopt an omnichannel approach to stay relevant in the digital age”. The leading three brands in the electronics & appliances category were boAt, BBK, and Asus, while the top three brands in the fashion & home sector were Aditya Birla Fashion and Retail, Puma India, and Wakefit. Further, the top brands dominating the grocery and personal care sectors were Hindustan Unilever, L’Oreal India, and Licious.
According to the report, the firms featured in the survey accounted for $15 billion in online sales, substantially affecting the Indian e-commerce sector. Further, traditional brands across all sectors have recognized the importance of e-commerce to remain competitive. According to the survey, while some businesses have been able to establish a presence in the online market, the majority have struggled to adapt to the flexibility and financial restrictions of the online marketplace. Nowadays, digital-first businesses generate over 75% of their sales online, whilst conventional players generate less than 30% of their sales online. The Digital Disruptors rating, which was derived from numerous parameters, provided insight into the elements that distinguish digital leaders from their rivals. Companies were ranked based on their online market share in the category, the percentage of their revenues derived from e-commerce, as well as their growth and success on e-commerce platforms.
