@ Vikash Sharma | Sr Journalist
NEW DELHI — India’s e-commerce market is entering a new phase, one defined not by competition between online and offline retail, but by their co-existence in a connected consumer journey. Shoppers today move seamlessly between screens and stores, researching online, purchasing offline, and vice versa, based on convenience, trust, and need.
These are among the findings of a new report by Boston Consulting Group (BCG), $300 Billion Connected Commerce: How Clicks and Bricks Are Defining the Future of India’s E-Commerce, based on a survey of more than 12,000 consumers across urban and rural India and extensive industry analysis.
Co-existence of online and offline
Currently at $120–140 billion, India’s e-commerce market is projected to reach $280-300 billion by 2030, however it is still only 7–8% of total consumer spending. Offline retail remains resilient, having grown at an annual rate of 13-14% over the past four years.
Multi-channel is the norm for shoppers, as 5 of 10 offline shoppers still use online to research and gather information. E-commerce is increasingly playing a role across the consumer decision journey, influencing discovery, comparison, and confidence ahead of final purchase.
Together, online and offline channels are shaping a single commerce ecosystem that consumers expect brands and platforms to serve seamlessly.
Commenting on the findings of the report, Parul Bajaj, India Leader – Marketing, Sales and Pricing Practice, BCG said, “Retail in India is becoming structurally multi-channel. Brands that treat online and offline as separate strategies risk falling behind. Those integrating both are scaling faster, innovating more frequently, and delivering stronger financial outcomes. The competitive advantage now lies in orchestrating connected consumer journeys across formats.”
Significant growth in e-services
E-commerce comprises e-retail & e-services, estimated at $75-85 Bn and $45-55 Bn, respectively. Growth is expected to be driven by e-services with an estimated forward CAGR of 20-22% vs 16-18% for e-retail.
~45% mobiles, ~23% personal electronic devices,~20% beauty & personal care products and ~20% apparel & footwear are now purchased online. However, beauty & personal care products, apparel & footwear are growing faster (~22%) than mobiles (~11%) and personal electronic devices (~6%). ~30% of travel/hotels & ~44% of movies & events are now booked online & growing upwards of 40%,
“India’s shoppers are becoming more diverse, with consumers using different formats depending on their needs and maturity. As the demographic mix of online shoppers becomes more democratic, platforms and brands must design simpler, safer, and more seamless experiences across touchpoints. The opportunity now is to reduce friction, build trust, and make multi-format journeys feel intuitive for every shopper.”, said Kanika Sanghi, Partner and Director, BCG
Broader Online Participation Is Driving the Next Wave of Growth
India now has nearly 300 million online shoppers and is projected to reach 440 million by 2030. E-commerce adoption is becoming more widespread, and the next wave of growth will be led by smaller cities and middle-income groups, with ~30% online shoppers from rural India. E-commerce is valued by consumers for reasons beyond discounts and convenience, as they cite broader choice and more information enable them to make smarter decisions.
Women account for roughly 45% of digital shoppers. For many women, e-commerce offers more than convenience. Nearly two-thirds of women shoppers say they feel safer shopping online, citing privacy, ease of access, and the ability to shop independently and at any time.
Increasing heterogeneity in formats, driven by rapid innovation
Category-focused platforms now account for more than 60% of online spending, while traditional horizontal marketplaces contribute less than one-third. Emerging formats are gaining momentum. Quick commerce has grown at over 100% CAGR, making immediate and top-up shopping missions mainstream and boosting purchase frequency. Social and chat commerce, growing at 40-45% CAGR, is bringing new users online, particularly from Tier 2 and Tier 3 cities, where trust-based and conversational buying play a central role.
Consumers increasingly choose platforms based on specific shopping missions rather than breadth of assortment alone, which is visible in how new online shoppers start with one format, mature shoppers use 5+ online formats.
E-commerce has been a big enabler for businesses
E-commerce has reshaped how Indian businesses grow and compete. Brands that sell online scale faster, innovate more rapidly, and deliver stronger financial outcomes. The time required to reach ₹100 crore in annual revenue has fallen from around 11 years to ~ 7 years; 1.5-3x faster innovations for brands that sell online.
Small businesses, MSMEs & even artisans & farmers – are seeing benefits, with low barriers to entry, opportunities to test, learn & scale fast with simplified business operations. Nearly 90% of small online sellers report sales growth, with many expanding employment and reaching national markets at lower cost.
Strengthening the Ecosystem for the Next Phase
As India’s e-commerce market matures, the report finds that sustaining momentum will depend less on rapid platform expansion and more on strengthening the broader ecosystem that underpins digital commerce.
Key imperatives include deepening digital skills across the workforce, particularly for small sellers and first-time entrepreneurs, to ensure they can effectively adopt online tools, manage multi-channel operations, and compete at scale. Continued investment in future-ready logistics and last-mile infrastructure will be critical to support faster, more reliable deliveries as demand expands beyond metros into smaller cities and rural areas.
The report also highlights the importance of simplifying export pathways to help Indian sellers tap global demand more easily, alongside agile regulatory frameworks that evolves with evolution in e-commerce formats. Technology-neutral regulation will also be essential to foster innovation while maintaining trust and transparency for shoppers and sellers alike.
Together, these enablers can help build a more inclusive, resilient, and trustworthy e-commerce ecosystem, one that expands participation, accelerates business growth, and supports India’s evolving consumption landscape over the long term.
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