E-commerce to touch $32 bn GMV this year RCEP members work on pending 14 issues

Next wave of growth to come from niches with wider appeal

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Having achieved 30 per cent growth during the first phase of the festive season sales, e-commerce sector is well-poised to touch an aggregate gross merchandise value of $32 billion this year.

In 2018, the e-commerce sector had garnered a gross merchandise value of $24 billion. The January-May period accounted for 35 per cent of 2018 GMV. In 2019, between January and May, e-commerce has recorded a GMV of $10.9 billion, growing by 29 per cent over the same period last year.

"A mid-term health check of the sector done in May 2019 shows that the first five months of the year have been strong for the sector, with both horizontals and verticals growing 29 per cent YoY," said RedSeer Consulting. Going by last year's share of GMV for last seven months of the year and assuming same ratios, for the last seven months of this year, RedSeer predicts that the GMV will touch $32 billion this year, clocking a 33 per cent YoY growth.

During the festive month between September 29 and October 28, RedSeer expects the sector to clock a GMV of $6 billion compared to $4.3 billion in the last year period. The first six-day Puja sales saw the sector making a growth of 30 per cent to $3 billion from $2.3 billion last year.

Further, the growth in e-tailing has been traditionally led by horizontals and more recently verticals. So far this year the growth of horizontals and verticals has been on par at 29 per cent.

However, RedSeer is bullish that the next wave of growth would come from specific niches that cater to a much wider set of consumers, including ones from smaller cities and lower income groups.

Some of these emerging niches are in group buying, social commerce, and live commerce space. These emerging players are showing strong indicators of traction- in terms of high adoption and satisfaction of the end user.

A recent report by logistics platform Shiprocket too found that online Direct-toCustomer SMBs are expecting 100 per cent growth in sales this time compared to last year's festive sales. This is because customers are getting more comfortable buying products online outside marketplaces.

Moreover, digital wholesalers have been roping the kirana stores and micro, small and medium enterprises into the e-commerce eco-system. Players like Udaan and Jumbotail have squarely targeted these retailer needs and have swiftly moved to establish a full stack offering- incorporating wide product selection, doorstep deliveries and credit availability at affordable interest rates. New Delhi, Oct. 14: A tenday work programme has been prepared by the 16nation RCEP grouping, which is negotiating a mega free trade agreement, to sort out pending 14 issues by October 22 that are hindering the conclusion of talks, sources said.

These 14 points, which are yet to be resolved, were shared on October 12 during the ninth ministerial meet in Bangkok.

Among these points, six are specific to India and that includes data related matters under e-commerce; auto trigger concept which can be used to stop sudden surge in imports; change in base year from 2014 to 2019; and tariff differential under which India has to limit the number of goods over which it would offer different duty rates to the member countries.

The other issues include ratchet mechanism, under which a nation can not go back on the commitments made under the agreement.

The RCEP (Regional Comprehensive Economic Partnership) agreement is being negotiated among 10 Asean members and their Piyush Goyal

six trade India.

The developments assumed sssssignificance as some sections of Indian industry have raised concerns over the presence of China in the grouping.

Various sectors, including dairy, metals, electronics, and chemicals, have urged the Centre to not agree on duty cuts in these segments. The agreement is to be concluded by November and signed in 2020.

Sources said India has sought change in base year for implementation of duty cuts under the pact from the proposed 2014 to 2019 as it has raised customs duties on over 3,500 products since 2014. partners, including