E-com retailers can clock Rs 120,000 cr in GMV during festive sale: Redseer
The festive season in India will give a major boost to the country’s e-commerce sector, with sales expected to reach Rs 100,000-120,000 crore in Gross Merchandise Value (GMV), according to an analysis by Redseer Strategy Consultants. The latest analysis predicts 20 percent year-on-year growth, fueled by high pent-up demand and a wave of premiumization.
Redseer’s research shows that the combination of rising consumer confidence, high pent-up demand, premium product promotions and the growing influence of fast commerce will drive significant growth in the Indian e-commerce sector this festive season.
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“As brands look to capitalize on the festive demand, many are strategically leveraging e-commerce platforms to meet the needs of aspirational customers and reach out to the relatively less accessible tier-2+ customers,” said Kushal Bhatnagar, associate partner at Redseer Strategy Consultants. “As a result, they are looking to work closely with the leading platforms to attract customers through lucrative discounts and offers available during large-scale festive events.”
The holiday season will likely help e-commerce’s big three (i.e. mobile, electronics and fashion) gain momentum, as their performance has been somewhat muted this year. Other categories (beauty and personal care, home and Q-commerce-led supermarkets) have delivered better business-as-usual performance and will see an incremental increase, taking their celebratory growth rate above 25 percent.
“Mobile phones and electronics remain key value and growth drivers this festive season, especially as consumers respond to affordability options that make premium products more accessible,” Redseer’s Bhatnagar said.
Amazon
The Amazon Great Indian Festival (AGIF), which started on September 27 with 24-hour early access for Prime members, has seen the biggest opening ever for its sellers and brand partners on Amazon. The company said the first 48 hours of AGIF 2024 were the best ever, with nearly 11 crore customer visits and over 8,000 sellers surpassing Rs 1 lakh in sales. Customers gained access to more than 25,000 new product launches across categories such as laptops, TVs, fashion and beauty, home furnishings, appliances, furniture, smartphones and groceries from top brands.
The highest number of Prime members ever shopped during the first 24 hours of AGIF 2024 (Prime Early Access), with over 140 percent more members shopping during this period and making 8x more daily purchases than average. Over three lakh unique products including smartphones, beauty products, apparel, daily essentials and more were delivered on the same day or next day.
AGIF 2024 witnessed demand from tier-II and tier-III cities, across key categories including appliances, fashion and beauty, smartphones and furniture from popular brands. Amazon also recorded a growth of over 40 percent in No Cost EMI transactions. Here, 90 percent of all EMI purchases for mobile phones, washing machines, TVs, refrigerators, ACs and video games (including PS5) are done through No Cost EMIs.
“The first 48 hours of Amazon Great Indian Festival 2024 were historic and the best ever for Amazon,” said Saurabh Srivastava, vice president – categories, Amazon India. “We are thrilled to witness the biggest opening ever, with a record 11 crore customer visits and the highest number of Prime members shopping during PEA (Prime Early Access).”
Mytra
E-commerce company Myntra also hosts the Big Fashion Festival. With 120 million visitors during Early Access and Day 1, Myntra witnessed customers exhibiting high shopping intensity across key fashion and emerging categories. Kicking off the sale event, Myntra witnessed 15x new users joining the platform over business-as-usual (BAU), and a 2x spike in OPM (orders per minute) at peak levels compared to last year, during the opening hour of the event.
“The Big Fashion Festival saw a fourfold increase in orders through BAU on the opening day of the event, along with 5.5x more Insiders (members of Myntra’s loyalty program) shopping at BAU during the first two hours of Early Access,” said Neha Wali , head of revenue, Myntra. “We are also seeing remarkable demand from both metros and non-metros, with about 45 percent of orders coming from tier 2 and tier 3 cities and beyond.”
Flipkart
E-commerce company Flipkart recorded 33 crore user visits during Early Access and Day 1 combined, during the 11th edition of the company’s The Big Billion Days (TBBD) 2024 sale event. The BBD was held on September 27, with early access starting September 26 for Flipkart VIP and Plus customers.
“Some of the early trends indicate an increase in demand for categories that enable a lifestyle upgrade, with tier-II+ cities showing growth ahead of this year’s festive season,” said Harsh Chaudhary, Vice President – growth, Flipkart.
First publication: September 30, 2024 | 8:39 PM IST