India’s retail sector witnessed a market size decline of 8.5 percent post-pandemic in FY 2021. Organized and traditional retail segments witnessed a major hit, while online retail sustained its growth momentum. India’s retail sector is worth $836 billion in FY 2022, with an 81.5 percent contribution from traditional retail, organised brick-and-mortar retail makes up 12 percent of the overall retail market, followed by online sales channels at 6.5 percent.
Online Retail Continues to Outperform:
Despite the pandemic, the online retail market in India is expected to grow by 32 percent (approx.) over the next few years with the potential to reach $225 billion (approx.). The D2C will be the key propeller of this growth; reflecting a CAGR of near 45 percent levels. With D2C and digital-first companies investing heavily in technology, they will combine to lend a growth of 38 percent to the D2C channel segment helping D2C to grow from 18 percent to 30 percent contribution share to a significant $70 billion opportunity.
BPC Outperforms, Emerging Segments Continue Robust Growth
Sustained growth across digital shopping platforms continues to be a defining trait of the beauty and personal care segment. Further growth potential is possible, as online sales constitute 9.4 percent of the overall segment. It reports strong growth of 143 percent in terms of order volumes, and over 132 percent in order values respectively.
Brand Websites Establish Loyalty Among Digital Shoppers
As consumers continue to shop online, brands across segments focus on stronger online presence and direct sales. The rise in technology investments seems to yield results; evident from the 80.4 percent year-on-year growth on brand websites, while dropship volume on marketplaces reports a 59.6 percent growth during the same period. Brand websites ensure strong growth for the Health & Pharmaceuticals segment (84.8 percent) as well as Fashion (89.5 percent).
Israel’s retail-tech ecosystem comprises innovative companies offering solutions for wide-ranging applications, from supply chain logistics to the in-store consumer experience. selected startups in Israel that provide technologies through the retail value chain. The landscape covers the following categories across the retail value chain: >Logistics >In-store technology >Online shopping >Business intelligence—Analytics
Interested to know more on the cutting-edge solutions offered by Israel companies, in Retail Sector, please contact the Trade and Economic Department at the Israeli Consulate General in Bengaluru.
Ms. Kavitha S @firstname.lastname@example.org
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