Business Guide | Israel-India 2022

Ordering a Better Future Online Sales in India – Increasing Volume & Profitability I ndians are trulywilling to buy and sell online, but online sales have not reached their peak although they rose 25 % in 2022 to top USD 80 bn and will reach the USD 100 bn mark in 2023 and then double to 200 Bn in 2026 . Compared to total retail sales in India, e-commerce is still a small fraction of the total market. In 2021 , it amounted to just 7 . 8 %, much lower than in China ( 46 . 3 %), South Korea ( 32 . 2 %), or Indonesia ( 20 . 2 %). So how can Indian market reach the $200 billion goal? Recent growth in the e-Commerce sector was due to the presence of multiple players and the emergence of new models like direct-to-consumer (D 2 C), and consolidation between delivering services. There are a number of parameters that keeps the Indian e-commerce market from full potential. First, slowconnection: India struggles with having very low Internet penetration ( 45 %only, in 2021 ). Successwill depend on better connection, improvedmobile services, more secure networks, etc. A second market opportunity lies in logistics: Managing, transporting and delivering purchased goods. E-commerce logistics industry revenues are expected to grow annually at more than 23 % from 2020 to 2025 . In the last 3 years, non-Flipkart and Amazon businesses grew exponentially along with other D 2 C brands. This increased the share of third-party logistics in the total supply chain. Increased investments insupply chain tech solutions such as order management, inventorymanagement, warehouse management, and logistics management are needed. A third obstacle is the automated service: in the fashion sector for example, only recentlywereadvanced Chatbots introduced for handling customer queries and customer engagement to cross-sell and upsell. The fashion industry reported a 51 per cent order volume growth in FY 2021 as compared to 2020 . And fourth, innovation: India hosts more than 4 , 658 e-Commerce start-ups, accelerating the advantages they can bring in the consumer retail segment and digital commerce models. m-Commerce is one promising direction: over 80 % of Indian retail e-commerce dollars will be spent viamobile devices in 2021 , rising to almost 84 % in 2025 . Overall, retail m-Commerce sales in India will reach USD 68 . 09 billion this year, making it the fourth-largest market in Asia-Pacific. The Indian e-commercemarket is estimated to reachUSD 400 Bn by 2030 . Online sales will witness a 23 % jump in gross merchandise value (GMV) and clock USD 9 . 2 Bn during the 2021 festive season compared to USD 7 . 4 Bn in the previous year. A Boost from Israeli Know-How Israel represents an excellent opportunity for exporters of consumer goods because of high retail prices and lack of domestic e-Commerce competitors. E-Commerce revenues in 2021 in Israel reached USD 5 , 468 million and could rise toUSD 8 , 433 millionby 2025 , a compoundannual growth rate of 11 . 44 %. Themarket’s largest e-Commerce segment is fashion, with a market value of USD 1 , 598 million in 2021 . 2022 < Business Guide < Israel-India Review < e-Commerce < 61