The cooperative societies will get direct access to more than 54 lakh sellers and service providers across the country through the GeM platform. Procurement using standard procedures on GeM would result in time-saving and a reduction in administrative costs. The Indian online grocery market is estimated to reach US$ 26.93 billion in 2027 from US$ 3.95 billion in FY21, expanding at a CAGR of 33%.
The beauty and personal care category was followed by footwear, eyewear, fashion and accessories as people started stepping out more often, said the report. The seller will be eligible for the waiver on the referral fee payable for a period of 90 days from the date of registration, the company said in a statement on Monday. But US technology firms invested more than two decades, and tens of billions of dollars, setting up complex production chains to provide essential goods for the e-commerce boom. Charoen Pokphand Group Co. is no longer actively in talks with Metro, leaving only Ambani’s Reliance to pursue the so-called cash-and-carry business, the people said, asking not to be identified as the information is private. A final decision could emerge as early as next month, one of the people said. In recent years, the e-commerce company has opened stores without cashiers in which cameras and sensors determine what shoppers take and bill them after they exit.
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The growth in the sector will further encourage employment, increase revenues from export, increase tax collection by exchequers, and provide better products and services to customers in the long term. The nearly-a-week-long online festive sales are likely to clock a gross merchandise value of $4.8 billion in 2021 reporting a growth of 30 percent as compared to 2020, said consulting firm Redseer in its e-commerce festive season report. In recent years India has experienced a boom in internet and smartphone penetration.
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This year alone, the portal will save PSUs and public sector undertakings around Rs 20,000 crore by enabling these transactions to be made digital. The portal has also time efficient, and has significantly reduced the turnaround time for tenders. Kishore Biyani-led Future Retail had attempted to stave off bankruptcy by selling its companies to Reliance Industries’ retail unit. Creditors did not approve the deal and the company was admitted to the National Company Law Tribunal for insolvency proceedings after it defaulted on ₹3,495 crore debt. Around million shoppers made purchases during the first four days, the report says. In October 2020, Minister of Commerce and Industry, Mr. Piyush Goyal invited start-ups to register at public procurement portal, GeM, and offer goods and services to government organisations and PSUs.
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There were several instances of public slugfest over market share dominance between the two companies in the past. Electronics and large appliances were the other best-selling categories, growing 5.2x over average daily sales. “While the beginning of the last quarter was slow on demand, we saw a good uptick in consumer sentiment and consumption patterns in late August and September.
The E-commerce industry has been directly impacting micro, small & medium enterprises in India by providing means of financing, technology and training and has a favourable cascading effect on other industries as well. The Indian E-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second-largest E-commerce market in the world by 2034. Technology-enabled innovations like digital payments, hyper-local logistics, analytics-driven customer engagement and digital advertisements will likely support the growth in the sector. ONDC will enable e-commerce platforms to synchronize search results on all the e-commerce platforms and display products and services from every platform. This will further boost business for MSMEs and help fuel India’s e-commerce growth.
India’s eCommerce sector received US$ 15 billion of PE/VC investments in 2021 which is a 5.4 times increase year on year. Propelled by rising smartphone penetration, the launch of 4G network and increasing consumer wealth, the Indian E-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion in 2017. The growth in shoppers partially comes from the vast catalogue the e-tailers have been able to offer, financial constructs that aid affordability and tech innovations that continue to drive adoption and excitement.
Gross GMV refers to total value of goods sold on platform prior to subtracting cancellation or return. There’s no shortage of startups and companies which have tried their hands at e-commerce, but a government entity is set to become India’s biggest player in the space. The Bain & Co report mentioned above had noted that e-grocery, as a segment, was estimated to see 40% growth before the pandemic but actually grew by 80% in FY21. Flipkart Quick relies on the company’s investment in fresh supplies startup Ninjacart where Walmart too has invested. In July, Flipkart raised $3.6 billion in what was also its first capital infusion from external investors since the Walmart acquisition. Canada Pension Plan Investment Board , Singapore sovereign wealth fund GIC, Japan’s SoftBank Vision Fund 2 and Walmart led the round, with existing investors like Qatar Investment Authority also participating in the round.
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And while the platform is already set to become India’s largest e-commerce portal, it is still growing rapidly. The average order value per day has witnessed a six-fold jump, and the average number of orders per day has almost doubled in FY23 compared to FY21. The overall government expenditure is $400 billion annually, so even with a $25 billion GMV, there might be plenty of headroom for the GeM to still grow in the coming years. GeM now has 62 thousand registered government buyers, and 50.90 lakh sellers.
E-commerce marketplaces usually hold up to three sales leading to the festival of Diwali. The first of these sales is usually the largest and usually accounts for more than 50% of the sales during the festive period. With less than a week to go before the e-commerce sites unleash their yearly dose of ‘festive sales’ here’s just how much Indians love to shop especially during sale days.
Last gmv amazon, Flipkart said it had taken the service to three new cities – Kolkata, Chennai and Mumbai – and that it will add four more by the end of the current month, taking the total to 14. In smartphones, ‘exclusive’ launches make about 60% of total online wireless sales, it said. The overall ecommerce penetration out of total retail market would be over 10% by 2025 compared to around 3.6% in 2018. According to the Bernstein report, mobile phones, which contribute about 50% of total sales for e-tailers, led the online penetration at 54% last year while fashion had a penetration of 12%.
- “Mobile as a category continued to lead GMV share, contributing to 41 per cent of the GMV, translating to 56,000 mobiles sold per hour,” said Ujjwal Chaudhry, partner, Redseer Strategy Consultants.
- In January 2022, Walmart invites Indian sellers to join its US market place with an aim of exporting US$ 10 billion from India each year by 2027.
- Fashion, as a category, is also expected to see a steady recovery this festive season – in line with greater outdoor mobility of consumers and steady rebound of fashion/office wear, RedSeer said.
- One of the reasons was because people went out more compared to in 2021,” Chaudhry explained.
GeM has also launched the One District One Product initiative to provide impetus to the specially-curated products from various districts in the country. More than 200 ODOP categories have been created on GeM, which is being populated with sellers and catalogues with assistance from Invest India and the department for the promotion of industry and internal trade . Myntra, India’s leading platform for fashion brands and pioneer in m-commerce play, has crossed $1 billion run rate in annualized GMV post discounts in July 2016. This is the first time ever that an Indian fashion brand has recorded $1 billion run rate in annualized average GMV. Only one out of 20 e-sellers on e-retailing sites achieve GMV sales of Rs 2.5 lakh every month. In order to increase the participation of foreign players in E-commerce, Indian Government hiked the limit of FDI in E-commerce marketplace model to up to 100% .
In the first four days, an estimated ₹11,000 crore of mobiles were sold by the large e-commerce players. We have more than 8 lakh MSME sellers and service providers on GeM and 1.2 lakh women sellers entrepreneurs on GeM. “Average number of order on GeM is more than 10,000. Gujarat, Uttar Pradesh, Maharashtra and Madhya Pradesh are the top 4 largest procurers on GeM,” the CEO said.
The company also said its share is 70% in the online smartphones market, 80% in fashion and 65% in large appliances. India on Thursday called the report of Redseer Strategic Consulting on festive season sale numbers as “speculative which lacks transparency”. The report further states that the first four days of the festive period saw the overall daily average GMV rise to 5.4 times compared to business as usual days for overall online retail. For the 2021 festive season, Indian e-commerce platforms generated sales with a Gross Merchandise Value of US$ 9.2 billion, a 23% increase from last year’s US$ 7.4 billion.
Secondly, Tier 2 cities will continue to drive growth as they are percent of the total shopper base this year. The report found that sellers are very bullish on this year’s sales and are looking to recover the losses suffered due to Covid. It’s perhaps fitting that India’s largest e-commerce portal is set to belong to the Indian government. The government has also revolutionized the country’s payments system through UPI, and has come up with several innovations including the Account Aggregator framework, and most recently, the digital rupee. These digital measures can only compound in the coming years, and India’s big push towards digital adoption will likely end up being a competitive advantage for the country in the decades to come.
E-tailers that are feeling the pinch will now be venturing into offline retailing. Education has always been a prominent sector in the development and growth of India, and the government has always been focused on implementing polici… Shiprocket becomes first inter-city logistics provider to join ONDC network… On October 22, Shiprocket, a provider of shipping and logistics solutions, completed its first successful transaction after becoming online on the government’s Open Network for Digital Commerce .
In terms of transacting shoppers, the number increased by 24 per cent year-over-year with 65 per cent of shoppers coming from Tier 2+ cities. On the back of high demand, 3PL logistics players added a workforce in Tier 2+ cities to fulfil the expectation of the platform in a seamless way. Customers placed a record of about 33.4 million orders during the mega sale with nearly 60 per cent of all orders coming from tier 4+ cities.
Electronics had a 36% https://1investing.in/ penetration while home-related products had 15%. In line with the Union Cabinet’s decision to enable procurement of goods and services for cooperative societies, GeM has taken significant strides in ensuring that the cooperatives are onboarded onto the platform in a phased manner. Necessary handholding is being provided by GeM for registration and activation of their GeM pool accounts.
The department aims to provide equal opportunities to all marketplace players to make optimum use of the e-commerce ecosystem in the larger interest of the country and its citizen. In its recent half-yearly report, Naspers, one of the largest investors in Flipkart, had stated that the ecommerce firm’s gross sales grew 43% during the six-month period. Driven by above, RedSeer expects strong 30 per cent y-o-y growth in festive sale week in 2021 to reach $4.8 billion in gross GMV with growth across categories, and setting the stage for a strong year for e-commerce in 2021, he added.