Recently, Indian government introduced various reforms to help the nation’s e-commerce industry grow. The onset of lockdown and a push towards digitization proved to be a blessing in disguise for the sector. As consumers resorted to online shopping, e-commerce became the backbone for supplying essentials to the more than 1.3 billion people of India.
The e-commerce sector has registered a growth of 36% year over year in the last quarter of 2020. The biggest beneficiaries of this rise are the personal care, beauty, and wellness categories which grew by 95% year over year. Meanwhile, th electronics category saw a rise of 27% annual growth .
These figures were mainly driven by Tier 2 and Tier 3 cities, which accounted for a 90% year over year increase in volume and value growth in particular. In fact, these cities registered a growth of 14% and value share growth of 43% in the last quarter of 2020.
Tier 1 cities were dominated by the FMCG and healthcare categories with more than 150% growth. The e-commerce platforms that contributed to these figures were led by Amazon and Flipkart in addition to upcoming blooming companies like IndiaMart Nykaa, Mantra, and Snapdeal.