India’s B2B e-commerce market, led by players like Udaan and Jiomart, will reach $90-100 billion in gross merchandise value (GMV) by 2030, a report showed on Wednesday.
It is further projected that the B2B general trade opportunity in India will reach $1.2 trillion by 2030, with eB2B coming up as a promising digital procurement solution, according to a report by Redseer Strategy Consultants.
At 84 per cent, India holds the largest share in general trade when compared to developed nations, including the US and the UK.
It is the unorganised general trade channel that is driving India’s retail market and will continue to grow, doubling in size from $0.7 trillion to $1.4 trillion in the same time-frame.
“While manufacturers have limited competitive threat, the eB2B channel is also helping retailers and brands solve multiple problems in their day-to-day business,” said Mrigank Gutgutia, Partner at Redseer.
India’s eB2B market has scope for multiple models but, multi-category play with wide category coverage and national coverage is likely to win, he added.
Given a low adoption in lower city tiers and small stores, eB2B is emerging as a strong digital procurement solution.
eB2B platforms have been able to effectively resolve some of the pressing pain points, such as higher prices, no credit option, untimely delivery, and low quality of products, among others.
The report said that eB2B has already captured a fair wallet share of the offline market, and retailers are confident about increasing their spending soon.
The report further suggests that approximately 50 per cent of the non-users are willing to shift to eB2B platforms in the coming year.
In order to access underserved markets, brands are turning increasingly to eB2B, either as an addition to their current distribution network or as a replacement for ineffective traditional distributors.
“The future will see a shift from unorganised trade to organised digital trade while rallying for emerging brands to scale in India, making eB2B a de-facto channel for brand marketing and ad spend,” said the report.