According to a joint report by Google and Deloitte, India’s e-commerce market is expected to grow almost three times to $250 billion by 2030. This will be much higher than the current level of $90 billion. The main reasons for this growth are the increasing number of Gen Z buyers, rapid expansion of quick commerce and artificial intelligence. This report titled ‘The USD 250 Billion Commerce Frontier’ states that by the end of this decade, 150 million (15 crore) new buyers will be added to the Indian digital economy. A huge group of Gen Z consumers—comprising 220 million (22 crore) people—will control 45 percent of total online spending. This will shift the market towards digital-based search and highly personalized shopping.
Speed of quick commerce will increase
Quick commerce, which is currently limited mainly to urban areas, is expected to grow into a powerful sector worth $50 billion in the future. The number of Quick Commerce shoppers is expected to double to 70 million (7 crore), with tier-2 cities and beyond contributing 30 percent of the market. The special thing is that by 2030, non-food categories like beauty, fashion and electronics will form 45 percent of the total quick commerce spending. This will create new opportunities worth $10 billion for experts in these special fields. Creator economy will also play an important role in this. It is estimated that by 2030, content creators will influence 30 percent of total retail spending. The report states that one in 10 online purchases will be directly linked to a creator’s storefront. Live commerce alone will grow to become a huge sector worth $8 billion.
change in shopping
Roma Dutta Chobe, Managing Director of Connected Consumer Commerce at Google India, said that this is a turning point for Indian commerce. The main reason for this is a fundamental change in the way India does shopping. Today’s consumers demand experiences that are driven by storytelling, powered by AI and immersive technologies, and with instant delivery. Artificial Intelligence will act as a ‘force multiplier’ (impact enhancing factor). This is expected to increase retail sector profits by 30-35 percent through a highly personalized shopping experience and improved operational efficiency.
Gen Z is leading the way
Anand Ramanathan, Partner and Consumer Industry Leader, South Asia, Deloitte, said that the market scenario is now moving away from ‘mass marketing’ (large-scale advertising) towards the era of ‘algorithmic intimacy’ (technology-based personal engagement). Ramanathan said a new group of digital-first consumers, led by Gen Z, is driving this change. These people value speed and relevance as well as authenticity. This is rapidly giving rise to ‘generative commerce’, where consumers can describe their needs and AI instantly creates or delivers solutions for them.