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Key Trends That Will Shape E-Commerce Industry In 2021

According to IBEF, India’s e-commerce market is expected to reach $111 billion by 2021 and $200 billion by 2026

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E-commerce, which was started as an experimental and innovative model of shopping, has leapfrogged into a huge market over the last few years, especially after the pandemic. As internet penetration and digitization skyrocket, huge opportunities are being created for unique business models in the space. According to IBEF, India’s e-commerce market is expected to reach $111 billion by 2021 and $200 billion by 2026. Here are the trends that the industry will see in 2022, as shared by experts.

Kirana Tech

According to reports, an estimated 14 million Kirana stores in India control more than 90 per cent of India’s $600 billion food and grocery market. “The Kirana is the King of India’s food and grocery sector. This has never been more apparent than during the Covid pandemic when the local familiarity, unparalleled proximity and indomitable spirit of Kirana entrepreneurs shone through for consumers and brands alike,” said Ashish Jhina, COO and co-founder, Jumbotai.l

Covid has compelled Kiranas to adopt technology. “In 2021, we saw Kiranas all across the country adopting e-commerce to source their products at a never before seen rate. A significant factor behind this accelerated transformation is the rapid expansion of B2B e-commerce platforms that provide a significantly wider selection, faster and reliable delivery, better fill rates, working capital financing and the convenience of ordering online whenever required,” he added.

Jhina believes that a transformation of Kiranas into digitally-enabled omnichannel grocery stores has begun, and this will only accelerate in the coming year. However, what kind of impact will the rise of quick commerce have on Kirana stores?

Quick Commerce

According to RedSeer management consulting, quick commerce is estimated to be a $30 Mn market in 2021 and is expected to grow up to 15x to reach $5 Bn in 2025. Like social commerce, quick or instant commerce is also a business model that has gained popularity after the pandemic.

Ola recently started the 15-minute grocery delivery in Bengaluru, Swiggy delivers in 15-30 minutes via its InstaMart service, Grofers (now rebranded as Blinkit) has pivoted to instant delivery of groceries within 10 minutes, Dunzo promises to deliver in 19 minutes in Bengaluru through Xpress Mart and BigBasket has the BB Express, which claims to deliver essentials within 60 minutes. We also have Amazon Fresh that has expanded to many cities this year and promises to deliver in 2 hours and Flipkart in 90 minutes under its Flipkart Quick service. Satvacart and Zepto raised funding recently. Will this affect Kirana stores?

“Traditional Kirana stores have the advantage of having existing relationships with customers in the neighborhood and larger product categories and SKU mix. While the operational overheads of Kirana stores remain extremely low, giving the cushion of sustainability and a very long runway as an arsenal to compete,” said Padmaja Ruparel, co-founder, Indian Angel Network and founding partner, IAN Fund.

Supply Chain Tech

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