Shoppers from tier-I and tier-II cities drive India's e-commerce growth

India’s Retail and E-commerce Trends, a report prepared by e-commerce tech firm Unicommerce along with Wazir Advisors, assesses the growth of India’s retail ande-commerce industry in FY22 and how consumer buying patterns have changed in the last two years. The report underlines that over this period India’s e-commerce growth was driven by consumers from tier-II and tier-III cities. Furthermore, growth was powered by the direct-to-consumer (D2C) segment.

Key highlights

• $836bn Estimated size of India’s retail sector in 2021-22 (FY22)
• 81.5% Contribution from traditional retail
• 12% Organised brick-and-mortar, and 6.5% online sales channels 
• $225bn Potential size of the online retail market in India, which is expected