eCommerce Mapping - India & MP

as a state
Ecommerce – India
In India out of every 9 start up, 4 are online market place .

Current penetration in 5% and expected to reach by 11% in 2024I

India e-commerce will reach US$ 99 billion by 2024, growing at a 27%

CAGR with grocery . Currently at 65 Billioin $

fashion/apparel are key drivers

Despite of lockdown Indian e-commerce sales rose by ~7-8% in 2020

(But rose by more than 20% in China and US)

Internet users in India are 65 Crs ( 50% of penetration) and expected to

reach 90cr by 2024.

Three out of every five orders are from tier-2

and smaller towns, a target audience of
nearly 200 million online shoppers by 2025
Online shoppers in India are expected to reach 220 million by 2025

Through its ‘Digital India’ campaign, the Government of India is aiming

to create a trillion-dollar online economy by 2025. 100% fdi

The Indian online grocery market is estimated to reach US$ 18.2 billion
in 2024 from US $1.9 billion in 2019, expanding at a CAGR of 57%.

As of February 15, 2020, the Government e-Marketplace (GeM), listed

1,071,747 sellers and service providers across over 13,899 product and
176 service categories. For the financial year 2020-21, government
procurement from micro and small enterprises was worth Rs. 23,424
crore (US$ 3.2 billion).

Internet penetration in rural India is expected to grow at a rate of 45%

• Between 2014 and 2018, its
ecommerce market more than 
tripled from $14 billion to $50 billi
on
. 
• Internet penetration in India
increased significantly over the
past five-to-ten years, sitting at
50% in 2020
Despite this significant decline in economic
growth, ecommerce maintained its growth
trajectory —  millions of people needed
products delivered straight to their homes
during lockdown.

According to Unicommerce, ecommerce

consumer demand across all major product
categories rose between February and June
2020.

Electronics & home automation and fashion

& accessories saw the biggest rise in
demand, growing 145% and 136%
respectively.
Advantage In India

• Attractive opportunities (mainly from E

groceries, e pharmacy, e education are
still have to huge market to cover)
• Growing demand (order value is increase
by 36% overall in Q4 of FY 2021, Tier 2
and 3 cities were accounted 90% growth
on YOY in sales.
• Policy support (100% FDI), Bharat net
(8000 cr of investment for broadband,
Bharat mart,
• India has an Internet user base of about
696.77million as of May 2020, about 50%
of the population
 eCommerce – Madhya Pradesh
Madhya Pradesh has emerged as a key e-commerce hub with
Bhopal and Gwalior ranked 14th and 16th respectively in top 20
cities.
Besides, other important e-commerce hubs are Indore, Ujjain
and Hoshangabad.
Even rural MP is fast catching up with Katni and Mhow
Cantonment figuring among top export hubs of the state
Just in last month union cabinet approved 16 states for their
Bharat net project under PPP model and MP is one of them
which will benefit to end mile reach for potential entrepreneurs

The Confederation of Indian Traders (CIAT) also in pilot study in

MP state to launch eStores to all MSMEs at national level to
compete with big fish like Amazon or Flipkart
• List of Startup Companies in Indore • List of Startups in Bhopal
• WittyFeed • Easy Retail For You
RackBank Appointy
Walkover CollegeKhabri
EngineerBabu Onnway
TM Store Vizzbee
Feedify HackerKernal
MotionGility Netlink
Oye24 IT Fusion
Indian Threads GypsyShack
Securitybulls TheKabadiwala
ShopKirana BusinessKeeda
Gramophone KhaDigi
• 5 States to Cater to
• While it’s a good idea to reach out to as large a consumer base as possible, if you
had to focus your attention based on who spends more, these are the states to
cater to:
• Karnataka
• Maharashtra
• Tamil Nadu
• Delhi
• Andhra Pradesh
• These make up for almost 65% of the e-commerce pie. The top 5 metros are part
of these states and we have already seen the significant contribution they make to
overall sales.
• 5 States You can Ignore
• Despite the potential of these markets, certain bigger states like the below
generate less than 1% online sales each, either due to connectivity issues, laws and
restrictions, or even cheating customers:
• Kerala
• Bihar
• Orissa
• Madhya Pradesh
• Assam
 % of total
Sno City State
orders
1 Bangalore Karnataka 14.12%

Sno City State

2 % of total Delhi Delhi 11.65%
orders
3 Mumbai Maharashtra 6.98%
6 Pune Maharashtra 4.07%
Andhra
7 Kanchipuram Tamilnadu 4 3.99% Hyderabad Pradesh 5.73%
8 Gurgaon Haryana 3.18%
5 Chennai Tamil Nadu 4.12%
Andhra
9 Rangareddy district Pradesh 2.51%

10 Thane Maharashtra 2.14%

Uttar
11 Gautam Buddh Nagar District 2.09%
Pradesh

12 Ahmedabad Gujarat 1.63%

13 Ghaziabad Uttar 1.52%

Pradesh
14 Kolkata West Bengal 1.32%
15 Jaipur Rajasthan 1.28%
2018

 States with least e-commerce penetration
Despite the potential of these markets,
certain bigger states like the below generate
less than 1% online sales each, either due to
connectivity issues, laws and restrictions, or
even cheating
customers:KeralaBiharOrissaMadhya
PradeshAssam
• Geographically, southern India
leads with 41
Geographically, southern India leads
with 41.0 per cent share of the
entire Indian e-commerce
landscape, followed by western
India (27.0 per cent), as per
numbers. This can be attributed to
the high literacy rate in the south
compared to the rest of India.
In Conclude with Potential of
eCommerce
The e-commerce industry in India is booming with a growth of $80 billion in 2020, which was significantly
higher as compared to the $39 billion that the e-commerce space earnfor 2017.

A good e-commerce statistic in any country is the population, and more importantly, the number of people
using e-commerce platforms. And India started strongly encashing in both field.

As of 2020, the average annual e-commerce revenue is around $338 per user. These are incredible numbers
considering only 28% of the total population in India uses online retail options to shop for products or services.

Amazon said last year 91% of their new customers are coming from tier 2 and 3 non metro cities. 57% of total
revenue.