India’s ecommerce sector appears to be growing not just in the main cities but the whole country, according to figures from advisory services firm Technopak.
Reported by warc.com, data from the report suggests that online retail in India will be worth $76 billion by 2021 and account for five per cent of total retail sales.
Furthermore, individual brands are already registering a sharp growth in sales in the region as online retailers like Nike, Puma and Wrangler finding themselves in an ‘increasingly interdependent relationship’.
One of the key drivers of ecommerce growth in smaller towns is the lack of access to physical stores stocking top-end brands, meaning those in lower tier towns have had to make an online payment for goods and services from high-quality, ‘name’ brands.
Speaking to economictimes.com, Puma’s managing director for South Asia Rajiv Mehta said: “Three years ago, about one per cent of total sales came from online channels. Now, that number stands at 15 per cent.
“Today, no brand can ignore the online channel,” he added.
In addition Mukesh Bansal, co-founder of Myntra, stated that before the dawn of ecommerce, many top brands “were sceptical” about bringing online retail to India.
“Now, it has become part of their mainstream strategy,” said Myntra.