Industry leaders at the 6th edition of the ETRetail E-Commerce and Digital Natives Summit 2026 said that India's journey to a $300 billion e-commerce market will be driven by underserved consumers in smaller towns, premiumisation trends, and deeper customer penetration rather than broad-based expansion, according to ETRetail.
Growth Paradigm Shift
The inaugural session brought together Gopal Asthana, CEO of Tata CLiQ; Achint Setia, CEO of Snapdeal; Gaurav Agarwal, Co-Founder of Tata 1mg; Sabina Chopra, Co-Founder & COO of Yatra; and Rajesh Raju, Managing Director of Kalaari Capital. The discussion was moderated by Dinesh Pai, VP – Business Analysis and Investments at Zerodha.
While projections place India's online commerce on a steep growth trajectory, Rajesh Raju urged caution against overestimating the pace of expansion. Drawing on nearly two decades of observing the sector, he noted that forecasts have consistently outpaced reality, ETRetail reported. He emphasized that sustainable business models require sufficient purchasing power across a broader consumer base, rather than just access to technology. "Consumers benefiting is not a good way of looking at business models. They don't work in the long run. It has to work for investors, businesses and consumers," Raju said.
Consumer Spending Power vs. Access
Despite the caution, several panelists argued that significant untapped demand already exists beyond India's largest cities. Achint Setia highlighted the emergence of a large cohort of value-conscious consumers in smaller towns who remain underserved despite being digitally aware and aspirational. Snapdeal’s focus remains on consumers seeking affordable fashion and lifestyle products priced below ₹2,000, many of whom live in Tier-II and Tier-III markets. "They are no less than any of us sitting here in terms of their awareness of what good fashion is and their aspiration of what they want to buy," Setia said, adding that this segment represents one of the largest opportunities for Indian e-commerce over the coming years.
Luxury and Travel from Smaller Cities
Gopal Asthana echoed the theme from the premium and luxury retail perspective. He noted that luxury consumption is increasingly emerging from non-metro markets, challenging long-held assumptions about where affluent consumers reside. More than half of Tata CLiQ Luxury’s business now originates from non-metro locations, with customers purchasing products ranging from ₹5 lakh to ₹50 lakh from cities such as Nagpur, Ranchi, Jamshedpur, and Patna. According to Asthana, digital platforms are effectively democratizing access to luxury products for consumers hundreds of kilometres away from the nearest luxury retail outlet.
For Yatra, the next growth opportunity lies in bringing more travel bookings online from smaller towns. Sabina Chopra pointed out that 63% of outbound international travel now originates from Tier-II and Tier-III cities. While travel demand is rising rapidly, a significant share of bookings continues to occur offline. Enabling these consumers to transact digitally represents one of the most important growth levers for the travel industry, she argued.
The Deep vs. Broad Debate
A recurring theme was that growth comes from serving specific customer segments more deeply rather than expanding broadly. Gaurav Agarwal challenged the conventional wisdom that scale is achieved by reaching more consumers. Drawing on Tata 1mg’s experience, he argued that commerce businesses succeed when they understand the unique needs of distinct customer cohorts and build tailored service models. "One of the biggest lies that has been propagated in commerce is that growth comes from going broad. The lesson we have learned is that growth comes from going deep," Agarwal said, as reported by ETRetail.
| Key Statistic | Value | Source (Panelist) |
|---|---|---|
| Tata CLiQ Luxury business from non-metro | More than half | Gopal Asthana |
| Outbound international travel from Tier-II/III | 63% | Sabina Chopra |
| Snapdeal focus price point | Below ₹2,000 | Achint Setia |
| Luxury product price range at Tata CLiQ | ₹5 lakh to ₹50 lakh | Gopal Asthana |
Implications for Marketplace Operators and Sellers
For cross-border e-commerce sellers and marketplace operators, the panelists’ observations underscore a shift in demand geography. The fact that 63% of outbound travel originates from Tier-II and Tier-III cities suggests rising disposable income and aspirational spending in these regions. Similarly, luxury purchases from cities like Nagpur and Patna indicate that premium segments are no longer metro-centric. Sellers targeting Indian consumers may need to adjust logistics, payment, and marketing strategies to reach these underserved but digitally aware buyers. The emphasis on value-conscious fashion under ₹2,000 by Snapdeal also points to a large price-sensitive segment that B2B platforms could serve through affordable product lines. As digital access becomes ubiquitous, the next wave of e-commerce growth in India will likely be defined by depth of engagement in smaller towns rather than breadth across metros.
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