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B2B general trade to hit $1.2 trillion by 2030 on online sales push: Redseer

Udaan is emerging as the clear leader, followed by JioMart among B2B e-commerce players. Overall general trade may double to $1.4 trillion by 2030, says the consulting firm.

August 31, 2022 / 02:32 PM IST
Representative image

Representative image


The business-to-business (B2B) general trade in India is likely to grow to $1.2 trillion by 2030, driven by B2B e-commerce, which is emerging as a promising procurement solution for companies as well as retailers, according to Redseer Strategy Consultants said.

The overall general trade channel, which drives the retail and FMCG sales in India, is set to double in size from $0.7 trillion to $1.4 trillion by 2030, it said.

The e-B2B market

India's e-B2B market is one of the fastest growing in the world and international benchmarks indicate it will reach $90-100 billion in gross merchandise value by 2030 influenced by multiple factors, the Redseer report said.

“Retailers, brands and manufacturers have realised the e-B2B market’s potential and are betting on it to shape the way they do business. While manufacturers have limited competitive threats, the e-B2B channel is also helping retailers and brands solve multiple problems in their day-to-day business. India’s eB2B market has scope for multiple models but multi-category play with wide category coverage and national coverage is likely to win,” said Mrigank Gutgutia, Partner at Redseer.

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As per the report, e-B2B has already captured a fair wallet share of the market, and retailers are confident about increasing their spending soon. The report suggests that approximately 50 percent of the non-users are willing to shift to e-B2B platforms in the coming year.

While there is an opportunity for regional as well as national players in the market, given the higher opportunity size, adoption and engagement, multi-category national players are best placed to win in this market. It said currently Udaan is emerging as the clear leader, followed by JioMart.

“To access underserved markets, brands are turning increasingly to eB2B, either as an addition to their current distribution network or as a replacement for ineffective traditional distributors,” the report said.

It also reveals that e-B2B formats are likely to give a higher return on investments of over 50 percent as compared to offline retail as well as cash and carry formats.

“In particular, the ones with multi-category revenue have a better margin. While the EBITDA margin post value-added-service revenue stands at 3-5 percent for the e-B2B grocery vertical and 5-7 percent for the discretionary vertical, under multi-category it stands at 6-8 percent. However, getting the category mix right is critical to boosting margin profiles,” it said.

FMCG players

Established brands with their e-B2B verticals do not consider 3P (third-party) eB2B a threat, given the difference in scale and significant value add of 3P eB2B, it said. Of late, several FMCG majors such as Hindustan Unilever (Shikhar), ITC (Unnati) have scaled up their online distribution apps. The players are also increasingly supplying products to retailers through third-party e-B2B apps, which peeved their traditional distributors.

Earlier this year, the All India Consumers Products Distributors Federation called for a ban on the supply of several FMCG firms, alleging that the companies were giving higher margins to online B2B apps. The federation later called off the ban after FMCG companies assured them of equal treatment and scrutiny of malpractices by online B2B companies.
Devika Singh
first published: Aug 31, 2022 02:32 pm
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