India's mass consumers to lead $300B ecommerce boom by 2030: Redseer

Indian 'mass' consumers, with an average annual income between Rs 2.5-10 lakh are set to dominate the ecommerce adoption in the country, unlocking an estimated $135 billion of the $300 billion total ecommerce opportunity by 2030, potentially adding over $110 billion to ecommerce GMV by 2030.  

Redseer Strategy Consultants, in its report titled, Unlocking value in Indian ecommerce: Catering to the 'mass' consumer, said, "As of 2022, India has 65-70 million households transacting on ecommerce platforms monthly. It is projected to go up to 120-130 million by 2030 led by higher adoption among mass consumers, who are projected to add >80% to the incremental transacting households."

Mass consumers, comprising mostly millennials and Gen-Z (approximately 75%), exhibit strong value consciousness across different product categories and are increasingly leveraging the internet for their purchase decision-making journey, the survey revealed, conducted as part of the report across metros, Tier I, and Tier II+ cities, targeting Gen-Z, millennials, and Gen-X shoppers.

The report highlights that around 70% of mass consumers have increased their shopping frequency on ecommerce platforms over the last year. These consumers are comfortable with technology, increasingly willing to try newer products and brands, can afford products currently available on ecommerce websites, and are adopting digital payments for smoother transactions. 

Redseer's analysis indicates that within the $15-20 billion mass ecommerce segment in 2022, 60-70% of the sales were led by large companies. The rest was led by sector-specific players, including Meesho, which focused on better regional and local selection and pricing, and beauty care company Purplle, followed by smaller companies.

In the retail space, Zudio (in fashion) has outperformed the industry over the past three years, along with other players like DMart, Reliance Trends, and VMart, among others, across the categories.

According to Redseer, mass consumers currently constitute about 53% of the Indian retail market, which is valued at $950 billion and is projected to expand at a CAGR of 10% to reach about $2 trillion by 2030.

This growth will be driven by mass consumers, who are projected to contribute about 65% to the overall retail market by 2030, growing the fastest among the consumer cohorts at a CAGR of nearly 12%, creating about $ 1.3 trillion market opportunity by 2030.

The remaining retail market value is anticipated to be shared by the 'strivers', who earn less than Rs 2.5 lakh annually, and 'affluent', who make more than Rs 10 lakh annually, growing at 8% and 5% rates, respectively, the report said.

It highlights the distinct preferences of Gen-Z, who are strongly inclined towards apparel, BPC, and electronics, while independent millennials tend to prioritise BPC, food and grocery, and apparel purchases. Gen-Z consumers also display a core value consciousness when it comes to making purchase decisions.