New eCommerce models on massive growth trajectory; gaining share in fashion and grocery: Redseer
As per latest reports from Redseer Strategy Consultants, New eCommerce models that have come up in the last few years to cater to unsolved consumer needs are set on a growth trajectory; this growth trajectory has been robust for new eCommerce models who have gained share steadily in fashion and grocery categories.
The report stated that quick commerce alone has witnessed 10x year on year growth, and that it continues to massively gain share within the egrocery market in India, despite global headwinds for the model. Another new eCommerce model, which is social commerce, is also on a growth spurt as it effectively solves problems for affordability and customer experience. Owing to a high referral share, this also is a low CAC model, stated the report.
India’s online retail landscape remains on a robust growth trajectory despite the transition to offline, in fact, in April, May, and June this year, close to 40-60% year on year growth was observed. With a CAGR of 38%, the market is well set for strong GMV growth, and a GMV of ~INR 4.9 Lakh Crore is expected in 2022 Additionally, a strong share of Tier-2 online shoppers is also expected to drive this growth further.
Mrigank Gutgutia, Partner at Redseer said, “Sustainable growth is the key- new ecommerce players need to find the right combination of aggressive monetization (via ads, relevant higher margin products and others) while doubling down on their inherently lower CAC model to achieve EBITDA profitability at scale”.
Highlighting the way forward for new eCommerce, the report concluded that larger players are likely to adopt these models more aggressively in the coming years and the sector will undoubtedly witness more M&A activities. Additionally, this emerging sector will also witness innovation in business models to expand topline and control costs.
About Redseer Strategy Consultants
Redseer Strategy Consultants is a leading strategy consulting firm. Founded in 2009, Redseer works with new-age consumer-focused businesses and offers growth advisory, digital strategy, and investments thesis. The company is a thought leader in the Internet economy space and is the most widely quoted consulting firm in the media.
The company boasts of a 90% + market share of new-age IPOs. Zomato, India’s first major consumer tech IPO and GoTo, one of the world’s largest consumer tech IPO, Nykaa, Paytm, Cartrade, Delhivery are other noted IPO engagements of Redseer. The company enjoys more than 50%+ market share in the new-age deal advisory and a lion’s share in the strategy consulting space
Redseer sees itself as a band of strategy consultants who have disrupted the 100+ year old management consulting industry, and in the process have emerged as the most sought-after consumer business focused advisory firm. The company is known for its proprietary methodologies, deep consumer understanding, high-quality research, and an entrepreneurial mindset. Run by the youngest set of consultants, today Redseer has a strong presence in India, Middle East, Southeast Asia, USA and UK. The company is headquartered in Bengaluru and has a formidable team of 200+ consultants in 7 offices across India and overseas.
