E-comm cos sell goods worth US$ 3.1bn during festive sale: RedSeer
- IBEF
- October 22, 2020
E-commerce firms sold products worth USD 3.1 billion in less than five days after launching their festive sales, a study by RedSeer Consulting said on Wednesday.
This is around 77% of the prediction by RedSeer of USD 4 billion revenue by players including Amazon, Walmart-owned Flipkart and Snapdeal by the end of the first round of festive revenue.
RedSeer said, "Online festive season has had a strong start over October 15-19, 2020 - USD 3.1 billion/Rs. 22,000 crore (worth) of goods have been sold online from brands and sellers in the first 4.5 days of the online sale event".
It added that the first few days of this year's online selling season saw a more explosive launch compared to last year.
The report noted four main themes that are driving this festive season's strong online sales growth.
This involves vigorous constructs of affordability, good success in the cell phone market, heavy uptake in cities of Tier II and beyond, and these events drive brand / seller recovery (post lockdown).
The annual TBBD (The Big Billion Days) sale of Flipkart started on October 16 and will end on October 21, while the "Big Fashion Festival" of Myntra is being held from October 16-22.
Amazon's "Great Indian Festival" began on October 17 and will continue to coincide with the festive season for about a month. As of October 16, Amazon Prime members were granted early access to the sale.
During the first 48 hours of its sale, Amazon India stated that over 1.1 lakh sellers on its website received orders, with most of these sellers coming from smaller parts of the world.
The players, however, have not revealed the number of orders they have received during their sales events so far.
During the festive sales, e-commerce firms see a large part of their business coming in, and they make substantial investments ahead of time to improve their capacity to manage the surge in order.
The festive season, scheduled around Dussehra and Diwali, sees players conducting various sales events.
RedSeer reports that overall festive revenues are projected to almost double this year, hitting a gross merchandise value of USD 7 billion (GMV) compared to USD 3.8 billion in the same timeframe last year.
The first sale of the festival season by Snapdeal ran from 16-20 October.
In a statement, Snapdeal stated that its five-day sale saw 80% of buyers opting for their Diwali purchases from a regional or local brand vis-a-vis 20% who preferred domestic and foreign brands. For the last festive season, the corresponding figure was 65% and 35%, respectively.
"Compared to national / international brands, the strong growth of lesser-known brands was attributed to two main reasons: increased choice and a large price gap," it added.
At the end of its sale, Snapdeal stated that almost 70% of the orders were issued by sellers based outside the country's top five metropolitan areas.
These include vendors who receive a large volume of orders every year, including in the festive season, in major non-metro commercial hubs such as Jaipur, Surat, Ahmedabad, and Coimbatore.
More than 90% of Snapdeal 's orders from non-metro cities have also been placed. At the close of the offer, Snapdeal was bought by buyers from over 3,700 towns across India.
In addition, four out of every 10 orders put on Snapdeal were first-time customers, which is consistent with new users increasingly embracing e-commerce.
Over 6 million new users were introduced to Snapdeal's platform during the pandemic-a trend that intensified during the festive season.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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