India’s online retail market: the positioning of Meesho, Flipkart, and Amazon

coalitionA fresh research on the e-commerce sector in India has been issued by Bernstein. With a 48% market share, Walmart-owned Flipkart is reportedly dominating India’s e-commerce industry. backed by Softbank According to reports, Meesho is the Indian e-commerce platform with the fastest-growing user base. The survey states that Amazon’s user growth was predominantly 13%, while Meesho’s increased at 32% and Flipkart’s gained 21% YoY.

But out of the three, Amazon’s marketplace offers comparatively high-end products.
Flipkart is the industry leader in Indian e-commerce.
Flipkart leads the Indian online retail business, holding about half of the market, according to the survey. It is said that the e-tailer is expanding more quickly than the nation’s industry. “Flipkart led the market as of FY23, with a 48% share in the Indian eCommerce sector. Flipkart’s growth is still outpacing that of the sector. With a 50% and 30% mix, Flipkart’s two biggest categories are expected to be mobile and clothing. According to the survey, Flipkart is predicted to have a 48% and 60% market share in the online smartphone and online fashion markets, respectively.
Meesho: The front-runner in smaller and tier-2 cities
Meesho’s expansion parallels the expansion of e-commerce in India’s tier-2 and smaller cities. The research largely attributed Meesho’s growing market share to its strategic emphasis on Tier II and smaller cities as a result of its mass positioning and zero commission business model. According to the survey, “Meesho is the fastest growing ecommerce platform in India, with an average of 120 million monthly active users (MAUs).”
The Meesho marketplace mostly sells unbranded goods. According to the research, the figure might reach 95%. “Meesho’s order volume increased 43% YoY over the past 12 months, with revenue growth at 54% thanks to healthy take rates and an 80% repeat customer rate,” the statement said. According to the survey, 95% of the selection on Meesho is unbranded, and roughly 80% of the sellers are proprietors of retail businesses.
The research states that Meesho’s current gross merchandise value (GMV) run rate is above $5 billion, with around 50% of it coming from fashion, 8%–10% coming from BPC (beauty and personal care), and 8%–10% coming from home and kitchen.
With over 48% of downloads in Indian e-commerce, Meesho is expected to lead the pack and increase its market share, according to the survey.
According to reports, Amazon is the most popular place to shop.
Although a research by AllianceBernstein indicates that Amazon is trailing behind in terms of customer growth, a different assessment indicates that it is the most sought-after e-commerce operator. According to a September Nielsen Media survey commissioned by Amazon India, the respondents across India ranked Amazon India as their top online brand.
Reliance Jio’s apparel business is expanding quickly.
Reliance Group-owned Ajio is reportedly adding customers quickly in the apparel e-commerce space. Based on monthly active users, or MAUs, the online retailer now has a 30% market share. Myntra, a firm owned by the Flipkart Group, still has the largest market share—more than 50%—when it comes to active users.
With a 25% growth rate, Myntra has the most among its rivals in December 2023. According to the research, a deeper examination of the company indicates that app users are not transacting as much as in the past. Myntra’s GMV increased by only 12% in FY 23 compared to 35% in FY22.
Among rapid delivery systems, Blinkit is the best.
Because of the market’s maturity, Blinkit is the e-grocery company that is expanding the quickest. According to the research, Zepto, which started operating in April 2021, is less comprehensive and offers fewer products than Blinkit.
According to the survey, “from a GMV perspective, quick commerce is a three-player structure in India, with Blinkit as the market leader with nearly 40% share, Instamart at 37-39%, and Zepto at around 20% share.”