India’s online eCommerce sector failed to meet the growth of eCommerce in comparison to the developed markets such as the United States and China in 2020. Post lockdown, India was able to quickly recover and host the most fortunate sales period ever.
However, the rise in eCommerce sales estimated to a single-digit number, rounding up to 7-8% whilst China and the United States saw a 20% rise.
According to Forrester Research, as published in the Economic Times the governments of these mature markets enforced the use of contactless buying.
“We were not lucky like other countries. Growth of eCommerce was less than 10% because we lost a lot of momentum during those three months (of the lockdown) and the companies were not ready to deliver essential goods,” said Satish Meena, senior forecast analyst at Forrester Research as published in the financial daily.
The online retail saw an ingress of new customers, existing shoppers buying more food and grocery. However, this wasn’t enough for the industry to nudge their growth post-mid-to-high 20s. Depressed consumer spending, an economic slowdown, and uncertainty worked as barriers obstructing the sales growth to hold on to a faster grip.
The overall economy will continue to lag till a Covid-19 vaccine is availed, but sectors of online grocery, e-pharmacy, and social commerce are expected to see a bulk of the action in 2021. The move to develop Super apps have already begun in India. WhatsApp has enabled payment transfers and a few eCommerce features like a product card are paving the way to being a credible super app. We can expect to see changes in the patterns of the eCommerce sector in India.
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