Indian Economy News

India's e-commerce festive season sees US$ 8.3 billion worth gross sales: Report

  • IBEF
  • December 1, 2020

Ecommerce festive sales season in India from October 15 to November 15, 2020, generated gross sales for brands and sellers worth US$ 8.3 billion (about Rs. 58,000 crore), up 65% from last year's US$ 5 billion (Rs 35,000 crore), research firm RedSeer said on Friday. RedSeer said in its study titled 'The Festival of Firsts' that this was also higher than the pre-festive estimate of US$ 7 billion.

In September 2020, gross sales of approximately US$ 3.2 billion (Rs 22,000 crore) were reported, which jumped to US$ 8.3 billion in the festive season, the report said. Of the US$ 8.3 billion reported in the first event, US$ 4.2 billion (Rs 29,000 crore), US$ 1.2 billion (Rs 8,700 crore) in the second event and US$ 1.4 billion (Rs 9,700 crore) and US$ 1.5 billion (Rs 10,300 crore) in other e-commerce events by e-commerce firms, including Amazon and Flipkart, owned by Walmart.

The report said that over 88% of the gross merchandise value (GMV) for the festive month was accounted for by the Flipkart group (including Myntra) and Amazon. Flipkart accounted for a greater share of the two teams (66%).

RedSeer Director Mr. Mrigank Gutgutia said, “The overall growth storey for this festive season has been very bullish. We had expected sales of US$ 7 billion, but the actual figures exceeded our estimates reasonably comfortably, showing how comfortable customers have become even in this pandemic hit year with online shopping.”

One key lesson from this festive season, he said, is that e-commerce has become more mainstream than ever. And it has shown that the value proposition of e-commerce is very strong with the right range at the right prices that is delivered rapidly in the protection of consumer homes. Mr. Gutgutia stressed that in order to succeed in a post COVID-19, it is imperative for brands and sellers to move their attention to online quickly and allow a seamless online experience for the consumer.

The study indicated that 40 million shoppers came from Tier II and cities beyond. "It added, "This festive season was determined by affordability and ease of access to a large range of items.

In addition, due to an increase in expectations of new consumers, cell phones continued to dominate the percentage share (at 46%) of all products across various platforms.

The report indicated that GMV per customer decreased from Rs. 7,450 (US$ 100.91) in 2019 to Rs. 6,600 (US$ 89.39) this festive season with affordability schemes rising the share of users from tier II and beyond cities. Due to factors such as COVID-19-related restrictions on going out and gathering for weddings and other festive celebrations, RedSeer said the fashion segment's contribution decreased from last year (from 16% last year to 13% this year).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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