According to a new report, the Indian retail sector will have a $1.3 trillion opportunity by 2030, driven primarily by consumers earning between Rs 2.5 and 10 lakhs per year.
‘Mass’ Consumers to Drive US$ 1.3 Trillion Retail Market Growth in India and Control 45% of $300 Billion eCommerce Opportunity by 2030, a new report finds.
By 2030, India’s $300 billion potential market for eCommerce may be driven by ‘mass’ consumers to the amount of more than USD 135 billion in GMV. According to the survey, this market seeks out products that provide the greatest ‘bang for the buck’ or overall value. They now use the internet extensively while making purchases to compare prices and become just as technologically aware as the affluent category.
According to the Redseer analysis, millennials and Gen-Z customers make up almost 75% of the mass market.
‘Millennials, who are value-driven and autonomous, lean toward BPC (beauty & personal care), food & grocery, and apparel, whereas Gen-Z, who are youthful and independent, show buy preference for apparel, BPC, and electronics. About 13% of the population, Gen-X, spend more money on food and groceries than on health and fitness. Gen-Z consumers differ from prior generations in several ways, but they share a fundamental value consciousness, according to the report.
The survey also revealed that this group would consider purchasing unbranded goods provided the quality was good. For this market sector, price/deals/discounts on eCommerce platforms, product quality, and platform trust are the three elements that influence purchasing decisions.
The middle class makes up the majority of those earning up to Rs 10 lakh. Between 1995 and 2021, the middle class in India grew at a rate of 6.3 percent per year, making it the country’s fastest-growing main demographic category in both percentage and absolute terms.
“It currently makes up 31% of the population and is projected to increase to 38% by 2031 and 60% by 2047”. When India turns 100, the middle class will number more than a billion people. These are the results of primary data-based PRICE ICE 360-degree surveys.
The Strivers subgroup of the Indian Middle Class, defined as having an annual household income between Rs 15 lakh and Rs 30 lakh, has expanded at a rate of 6.4% per year between 2015–16 and 2020–21. According to the PRICE survey, The Seekers, another subgroup of the Middle Class with annual incomes between Rs 5 lakh and Rs 15 lakh, have increased by 4.8% throughout this time.
According to the survey, by the end of this decade, the country’s demographic structure will shift from an inverted pyramid, which represents a small rich class and a very large low-income class, to a crude diamond, where a sizable portion of the low-income class rises to join the Middle Class.
Therefore, the eCommerce industry in India will also be stimulated by population expansion.
