With online shopping becoming the new normal, Indian e-commerce is expected to grow at a compound annual growth rate (CAGR) of 27 per cent to reach $163 billion by 2026, almost three times the growth of the overall retail market, according to Redseer.
In 2022, the size of the e-commerce market was estimated at $63 billion. The report states that for grocery, online sales will account for over 25 per cent of sales for most major retail categories by 2026, indicating the significance of digital leadership in the coming years.
Similarly, digital-first brands now account for over 25 per cent of all online sales, which shows the growing importance of digital-first strategies. These digital-first brands are also expanding offline, threatening the traditional players on their turf.
Moreover, the research also identified 75 Digital Disruptors across three categories: electronics & appliances, fashion & home, and grocery & personal care, in the Indian e-commerce market in 2022.
“With digital-first brands accounting for 25 per cent 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,”said Anil Kumar, CEO and founder, Redseer.
The top 3 brands in the electronics & appliances sector were boAt, BBK, and Asus, while Aditya Birla Fashion and Retail, Puma India, and Wakefit ruled the fashion & home sector. Hindustan Unilever, L’Oreal India, and Licious took the top positions in grocery & personal care.
The brands listed in the report accounted for $15 billion in online sales, significantly influencing the Indian e-commerce market, noted the report.
Again, traditional brands across categories have recognised the criticality of e-commerce to stay relevant. The report said that while some have been able to mark their presence in the space, many have struggled to adapt to the agility and financial parameters of the online market.
Currently, digital-first brands typically derive around 75 per cent of their sales online, while traditional players garner less than 30 per cent of sales from online transactions.
Digital Disruptors ranking
The Digital Disruptors ranking, derived from multiple factors, offered insights into the building blocks that set digital leaders apart from their competitors. The elements considered for the ranking of companies included their online market share in the category, the per cent of sales they derive from e-commerce, and their growth and performance on e-commerce platforms.