India's 'mass' consumers to lead $300 bn e-com opportunity by 2030: Redseer

Redseer's report added that approximately 70% of mass consumers have increased their shopping frequency on e-commerce platforms in the last one year

India’s ‘mass’ segment consumers, with an average annual income ranging from Rs 2.5-10 lakhs, are projected to drive around $135 billion In e-commerce gross merchandise value (GMV) of the total $300 billion e-commerce opportunity by 2030, a recent report said.

As of 2022, India has 65-70 million households transacting on e-commerce platforms monthly, which is projected to go up to 120-130 million by 2030. Of this, mass consumers are expected to contribute to over 80 per cent of the incremental transacting households, the report by Redseer Strategy Consultants said.

As of 2022, mass consumers constitute approximately 53 per cent of the Indian retail market, which is valued at $950 billion. According to Redseer’s projections, this market is expected to cross the $2 billion mark by 2030, while the share of mass consumers is expected to grow at a CAGR of 12 per cent to touch approximately 65 per cent over the same period.

 

The remaining retail market value is anticipated to be shared by the 'strivers', who earn less than Rs 2.5 lakh annually, and the 'affluent', who make more than Rs 10 lakh annually. These segments are expected to grow at a CAGR of 8 per cent and 5 per cent, respectively, the report said.

Redseer’s report added that almost 70 per cent of mass consumers have increased their shopping frequency on e-commerce platforms in the last one year.

As many as 75 per cent of mass consumers comprised of millennials and Gen-Z users. “While Gen-Z, who are young and independent, show purchase preference for apparel, BPC (beauty and personal care), and electronics, the value-driven independent millennials tilted towards BPC, food and grocery, and apparel,” the report added.

Within the $15-20 billion mass e-commerce segment (in 2022), 60-70 per cent of the sales were led by large companies, while the remaining 30-40 per cent of sales was led by sector-specific players like Meesho and Purpelle, who have a focus on regional and local market offerings.

Moreover, in the offline retail space, the report said that players like Zudio have outperformed the industry over the past three years, along with other companies like DMart, Reliance Trends, and VMart, among others, across the categories.