Jio and Facebook can together unlock India’s digital ecosystem with an overall potential addressable market of $2 trillion by 2025, according to a report by a brokerage firm.
As per report, India has the second largest internet users (600 million+), fastest growing ecommerce (30%+ CAGR), second largest smartphone users (700 million+) and a deep payments network (1.5 billion transactions/ month). “A platform approach can unlock the digital ecosystem.”
It further states that the share of eCommerce in overall retail is expected to increase from 4% to 10% by 2025 as the sector continues to accelerate with ~30%+ CAGR over 2018-25. The brokerage added that Reliance Retail's leadership on grocery, entry into eCommerce (JioMart), and a strong supply chain will enable a leadership position.
“Eventually we expect JioMart to be an integrated commerce platform and include other categories - electronics, fashion and apparel,” it said.
The report says WhatsApp Business will enable merchants on boarding with WhatsApp pay to enable payments while it could become a 'Super App' that bundles commerce solutions, payments/Fintech and media/content.
Overall share of UPI is expected to increase to 50-55% of digital payments by 2025, while cards would be 40-45%. “With Reliance's New Commerce strategy, kirana stores are adopting mPoS to facilitate transactions across channels,” the report said.
Digital advertising spend is ~US$1.5 billion, expected to grow at a robust 32%. “Jio shares multiple OTT apps such as JioCinemas (for videos), JioSaavn (for music) and the penetration is picking up.
