Shoppers in India are becoming more seasoned in making purchases through both offline and online channels, and know when to switch from one to the other. The choice of channel depends on factors such as price, variety and convenience.
After years of buoyant growth for internet retailing, and increasingly intense competition in overall retailing in India, omnichannel retailing is expected to witness growing importance amongst both internet retailers and store-based retailers. Store-based retailers will put increasing effort into improving their digital platforms to better reach out to consumers.
With increasing disposable incomes and improving living standards, consumers in India’s second- and third-tier cities and rural areas have seen rising purchasing power, leading to trading-up. With further urbanisation, lower-tier markets are expected to be the major factor driving growth over the forecast period in India, as higher-tier markets are reaching a greater level of saturation.
Flipkart Online Services remained the largest single retailer in internet retailing in 2018. Walmart Inc picked up a 77% stake in India’s largest online retailer Flipkart for USD16.
Third party merchants continued to lead internet retailing overall in 2018. These are businesses which sell products via the websites of pure internet retailers such as Flipkart and Amazon.
Online specialist retailers have become a force to be reckoned with for multi-brand retailers such as Amazon and Flipkart. Online eyewear specialist Lenskart.
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