Economy News

Indian E-commerce industry booming by 36% growth in last quarter

Beauty and Wellness (PCB&W) segment being the biggest beneficiary, the last quarter of 2020 saw e-commerce order volume growing by 36% in India with Personal care.

Tier 2 and 3 cities accounted for a 90% YOY incremental volume and value growth.

The e-commerce industry had reported a 26% order volume growth in Q4-2019 vis-à-vis Q4-2018.

The sudden acceleration in growth is in the light of COVID-19. The effects of lockdown led to a massive change in consumer habits with many new shoppers and sellers coming online.

Simultaneously, Electronics category witnessed 12% YOY growth in average order value (AOV) in addition to 27% YOY growth in volumes.

Fashion and accessories continue to be the largest segment by volume as it reported 37% YOY volume growth.

FMCG & Healthcare is the fastest growing category in Tier I and metropolitan with 150 per cent-plus growth.

This has covered trends related to the overall e-commerce growth, region-wise consumer demand and direct-to-consumer (D2C) trends and how it affects the industry in the post COVID-19 world.

The e-commerce industry has emerged as the backbone of the retail industry and small and big players have realised the immense potential that e-commerce holds.

Partner, Kearney, Siddharth Jain, said that The Personal Care, Beauty & Wellness category has seen stupendous volume growth of over 95% in Q4-2020, as compared to the same period last year.

He further added that Tier II and Tier III+ markets have shown maximum growth potential, outpacing that of Tier I cities.


Check all the recent news updates and share market updates


 

Get 90% Discount on Brokerage Now! Open Demat Account