The Reserve Bank of India (RBI) has highlighted rural India’s significant contribution to ecommerce growth in the recent festive season. In its November 2024 monthly bulletin, the central bank noted that rural India is becoming a crucial driver of ecommerce sales.
“Rural India is emerging as a gold mine for ecommerce companies in this festival season; this is expected to gather further momentum with the sharp increase in kharif output and optimism around rabi production emboldening a record foodgrains target for 2024-25 (FY25),” the bulletin stated.
Continue Exploring: Zomato’s unconventional job posting sparks debate over INR 20 lakh fee
RBI discusses $5 Bn growth of Q-Commerce
The RBI attributed this growth to increased festival spending, which boosted real economic activity in the third quarter. E-commerce platforms are employing various marketing strategies to attract GenZ consumers.
Further, the bulletin discussed the rapid growth of the quick commerce sector, valued at over $5 billion and projected to reach $30 billion by 2029-30. D2C brands are seeking funds to expand their presence and sales through quick commerce platforms.
With a notable premiumization trend in the electric vehicle segment, electric two-wheelers also saw significant sales during the festive season.
Continue Exploring: Subway aims to double store count in India to 1,700 in six Years
Flipkart registers record 282 mn visitors
Meanwhile e-commerce platforms’ data supports the RBI’s observations. Flipkart recorded 282 million unique visitors between September 1 and October 28, primarily driven by Tier-II+ cities. Amazon also saw significant sales from non-metro cities, with 85% of customers and 70% of Prime members hailing from Tier-II & III cities.
Growing smartphone penetration, affordable internet tariffs, increasing disposable income, and festive discounts have contributed to ecommerce adoption beyond metros. This has led to the rise of ecommerce and D2C unicorns like boAt, Flipkart, and Honasa.
India’s ecommerce startups raised over $561 million in funding between January and June 2024. According to Inc42, India’s ecommerce segment is projected to become a $400 billion market opportunity by 2030.
