India’s e-commerce industry expected to grow 84% by 2024: Report – thehindubusinessline
Daily active users growth accelerates in last three quarters
India’s e-commerce industry is expected to grow by 84 per cent to $111 billion by 2024, according to a report by Affle’s MAAS platform and Sensor Tower.
Affle’s MAAS platform is a unified mobile advertising platform and Sensor Tower is a mobile app store marketing intelligence company headquartered in the US. The report titled ‘The Dawn of the New-Age Shopper in the New Normal’ noted that India’s spends of Q2FY21 across five popular e-commerce apps stood at over $60 million, more than the combined average spends across Indonesia, Malaysia, Thailand and Vietnam.
Recovery in 2021
In India, daily active users (DAU) growth in the top shopping apps accelerated in the past three quarters after Club Factory’s removal from app stores dampened growth in mid-2020. The top 10 apps averaged more than 7 million DAUs each in Q2FY21, an 18 percent year-on-year growth.
The average monthly active users (MAU) among the top apps in India took a notable hit with the removal of Club Factory in Q2FY20. However, active user growth in India started to recover in early 2021.
Shopping app installs in India showed strong year-on-year growth in July and August 2020 and remained above the 2019 levels for the rest of the year and into 2021. India’s shopping app installs surged again in July 2021, surpassing 80 million that month, up more than 15 million month-on-month. Social commerce app Meesho alone is said to have contributed more than 12 million downloads.
Also, Day 1 and Day 7 customer retention for top shopping apps in India are said to have reached their highest average since 2020 in Q2FY21. Longer-term retention for top shopping apps in India peaked in Q3FY20, and while retention decreased in the following quarters, it still showed positive year-on-year growth.
Talking about robust e-commerce adoption and growth in the Asian markets, Viraj Sinh, Co-founder, Managing Partner – International, MAAS, said, “India and South-East Asia are projected to be one of the fastest growing e-commerce markets in the world by 2025. With its unique demographic and fast-changing consumer behaviour trends, a paradigm shift towards e-commerce is certain and it continues to happen at a rapid pace. New verticals and niche players continue to spring up across the region that further drive the adoption and penetration of e-commerce which is still relatively low.”