The gross merchandise value (GMV) of India’s B2B e-commerce market, which is led by companies like Udaan and Jiomart, will reach $90 billion to $100 billion by 2030, according to a report released on Wednesday. A study by Redseer Strategy Consultants predicts that the B2B general commerce market in India will reach $1.2 trillion by 2030, with eB2B emerging as a potential digital sourcing option.
Comparing industrialized countries like the United States and the United Kingdom, India has the largest share in general trade with 84%. India’s retail sector is driven by the general unorganized trade channel, which is expected to continue to grow and double in size from $0.7 trillion to $1.4 trillion over the next five coming years.
As manufacturers face less competition, Mrigank Gutgutia, partner at Redseer, said the eB2B channel also helps brands and retailers find solutions to the many problems they face on a daily basis.
Although there is room for several models in the Indian eB2B industry, he noted that a multi-category game with extensive category coverage and national coverage is likely to prevail. Due to its low acceptance by smaller retailers and lower tier cities, eB2B is quickly becoming a powerful digital procurement solution.
Some of the biggest issues like higher costs, lack of credit option, delivery delays, and poor product quality, among others, have been successfully addressed by eB2B platforms. According to the survey, eB2B has already managed to grab a significant share of the offline market’s wallet share, and merchants are confident that their spending will increase shortly.
According to the survey, more than 50% of non-users are ready to switch to eB2B platforms in the coming year. Brands are increasingly relying on eB2B, either to complement their current distribution network, or to replace inefficient traditional distributors, to access neglected regions. “The future will see a shift from unorganized commerce to organized digital commerce while encouraging start-ups to grow in India,” according to the research.
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