Web Exclusive | January 2019
Boom in India’s e-commerce market
India is expected to become the world’s fastest growing e-commerce market, driven by robust investment in the sector and a rapid increase in the number of internet users. Various agencies have high expectations about the growth of Indian e-commerce markets. Indian e-commerce sales are expected to reach $100 billion by 2020 from $30 billion in FY2016. Further, India’s e-commerce market is expected to reach $220 billion in terms of gross merchandise value (GMV) and 530 million shoppers by 2025, led by faster speeds on reliable telecom networks, faster adoption of online services and better variety as well as convenience. The Government of India has taken various initiatives to improve the retail industry in India due to which many international brands have made their debut in the Indian market in the past few years.
Retailers including H&M, GAP, Inditex, Adidas, Puma, and Walmart have already shared their expansion plans in India which indicates the huge potential of the Indian apparel industry. The leading Japanese retailer – Uniqlo is opening its first showroom in India next year, H&M – one of the worlds biggest clothing retailers, is targetting to open 50 showrooms by the mid of 2019 and GAP is expecting to add 50 more showrooms in India. India stands second globally when it comes to consumption of Jeans. The domestic market of India is big and so is the production. However, India is still importing a considerable amount of Denim Garment from overseas also and the post-GST (VAT introduction) retailers based in India and overseas have been keen to import from the neighbouring countries who are enjoying duty privileges from India. There are a series of treaties which are expected to be signed in the coming years which might add to the increase in imports of garments.