India’s Consumer Spending to Surpass $4T by 2030: Shiprocket
- ByStartupStory | August 4, 2023
A new report by Shiprocket, a prominent logistics company, has projected a significant surge in consumer spending within India, with expectations that it will surpass $4 trillion by 2030. This robust growth is predicted to occur at a Compound Annual Growth Rate (CAGR) of approximately 10%, driven by the burgeoning domestic consumption market and substantial consumer expenditure. The report, titled “eCommerce in the New Bharat and its Future,” highlights various trends and factors shaping this remarkable trajectory.
The study anticipates a substantial increase, nearly double the current figures, in consumer spending across categories such as food, housing, apparel, personal care, transport, and communication. The report identifies evolving consumer behaviors, widespread internet penetration, a thriving local consumer ecosystem, and technological advancements in consumer products as the pivotal drivers behind this growth.
Amidst the shifting landscape of payment preferences, the report points out that UPI (Unified Payments Interface) holds the position of the most favored prepay option at 57%, followed by credit cards at 31%. Other payment methods like wallets, net banking, and debit cards constitute the remaining 12%. The survey also underscores the increasing dominance of online marketplaces, revealing that nearly 80% of consumers prefer shopping through these platforms. Among the top categories, fashion and accessories lead at 48%, followed by electronics at 32%, and groceries at 30%.
“At Shiprocket, we commend the spirit of entrepreneurs and small business owners who drive innovation, provide job opportunities, and promote economic progress. We believe in the power of MSMEs and are committed to empowering them with our tech-driven solutions and being their Partners in Growth,” said Saahil Goel, CEO, and Co-founder, Shiprocket.
Quality emerged as the foremost consideration for over 52% of Indian consumers when engaging with online shopping sites, closely followed by trust and pricing. The report uncovered a strong preference for WhatsApp updates among Indian consumers, with 68% favoring it for tracking their online orders. It also shed light on brand dynamics, with 40% of brands acknowledging that a combination of all channels, including marketplace, website, and social media, drives their maximum sales.
However, challenges persist, with 38% of brands encountering issues related to efficient logistics, both domestically and internationally. The report’s insights are expected to empower MSMEs, aiding them in understanding consumer preferences and making informed business decisions. Shiprocket introduced several new offerings during its Shiprocket SHIVIR 2023 event in New Delhi, including Brand Boost 2.0, ONDC, Shipping 2.0, Shiprocket Engage+ WhatsApp Suite, and Shiprocket Promise, aimed at enhancing its technological prowess.
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