This year the industry expanded 23% to $17.8 billion in gross merchandise value (GMV), according to RedSeer Management Consulting, a market research and consulting firm. India’s e-commerce market picked up in the 2nd half of the current year, driven by robust growth at Flipkart Ltd and Amazon India and new entrant Paytm E-commerce.
“The market showed very strong growth in the second half of the year and we expect that to continue in 2018,” Anil Kumar RedSeer chief executive, said. “It wasn’t just that sale months were (better than the year-ago period), even the non-sale months in the second half were much higher than H1. So there are enough signs that the market should see very high growth next year.”
“The ongoing efforts by Flipkart and Amazon to go deeper into Tier 2 and Tier 3 cities and Paytm’s aggressive expansion plans will drive the market next year. Because of this, we should we see that growth will come more from new online shoppers rather than selling more to existing customers. In 2016 and 2017, it was the other way round—most of the growth was coming from existing users,” Kumar said.