This is an exciting market set to grow. E-commerce in India is expanding rapidly – it is predicted to grow a rate of 18% each year to 2025.⁷ What’s more, Indian consumers are comfortable buying from international businesses: almost three quarters of e-commerce spending is cross-border.⁸ And with growing populations among young, urban and middleclass consumer groups, this market could present a strong opportunity for growth.

The focus on health in India has driven growth in a number of product categories, from packaged foods and dietary supplements to fitness clothing and equipment.

Packaged foods

Foods that have an auxiliary health benefit are popular with Indian consumers, many of which consider their health goals when choosing packaged food products. Features such as aiding weight loss and all-natural ingredients are the most popular attributes that consumers search for. However, many are increasingly looking to their food products for help with other wellness benefits, too. For example, more than 40% of 35-44 year-olds in India are interested in stress-relieving foods.⁴

Top five health attributes consumers want to see in packaged foods:¹⁰

Supplements

India’s growing population has witnessed an increase in lifestyle diseases. According to a 2020 report, around 20% of its population has high blood pressure, 11% has high cholesterol, 9% has diabetes and 18% has depression.⁶ This has contributed to the increase in consumers seeking dietary supplements such as vitamins and minerals or herbal supplements – a trend that was driven further by the Covid-19 pandemic.⁶

Apparel and accessories

The Covid-19 pandemic is not the only health concern for Indian consumers. An increase in lifestyle diseases such as type 2 diabetes and heart disease has helped to encourage more of them to take an interest in fitness and becoming active.¹¹ That has meant good news for businesses selling activewear, home gym equipment and accessories, and sports equipment.

Research local payment preferences

Payment options such as digital wallets and buy now, pay later services are becoming more common among Indian e-commerce consumers. In fact, digital wallets are the leading e-commerce payment method in India, accounting for 45% of transactions.⁷ It could be worth ensuring that you offer a wide range of payment options.

Consider a mobile-first strategy

According to eMarketer, more than 80% of retail e-commerce dollars will be spent via a mobile device in India in 2022, rising to almost 84% in 2025.¹⁴ Consumers in India are already buying 5G-enabled smartphones in preparation for the technology’s rollout and the number of internet users is set to reach 900m by 2025, around 45% more than in 2020.¹⁵ What’s more, digitally connected consumers are predicted to be higher spenders.¹

Understand trade regulations

It’s a good idea to understand the customs requirements and trade regulations for any market you sell into. When exporting to India, for example, you will need an importerexporter code (IEC), which is a business identification number issued by the country’s Directorate General of Foreign Trade (DGFT). You can find out more about how to get an IEC and other customs requirements at DGFT’s website.