What: India's e-retail market has reached $60 billion in GMV, becoming the world's second-largest online shopper base with transformative business models reshaping the sector.

Why it is important: Three disruptive models - quick commerce, trend-first commerce, and hyper-value commerce - are driving India's e-retail evolution amid changing consumer preferences.

India's e-retail market has evolved into a $60 billion powerhouse, surpassing the US to become the world's second-largest online shopper base. Despite recent headwinds slowing growth to 10-12% in 2024, long-term prospects remain robust, with projections indicating 18% annual growth to reach $170-190 billion by 2030.

The transformation is driven by three key disruptive models: quick commerce, delivering unprecedented convenience with 30-minute deliveries; trend-first commerce, particularly in fashion, projected to quadruple to $8-10 billion by 2028; and hyper-value commerce, which has grown from 5% to 12% of e-retail GMV since 2021.

This evolution is particularly significant in Tier-2 and smaller cities, which now account for 60% of new customers since 2020. The market's maturation is further evidenced by changing consumer behaviors, especially among Gen Z shoppers, who split their shopping across multiple platforms and show strong preferences for experimental brands and digital payments.

IADS Notes: Recent market developments validate India's e-retail transformation. In January 2024, Coresight Research identified key trends including expansion to Tier 2+ cities and GenAI-driven personalisation. March 2025 data showed India's affluent households projected to reach 30% by 2035, while February 2025 revealed significant technological integration across Asian retail. The market's evolution is further supported by strategic infrastructure development, with November 2024 data showing the implementation of Free Trade Warehousing Zones enhancing supply chain efficiency. These developments align with broader retail trends, as January 2024 projections indicated strong e-commerce sector growth.

How India shops online 2025