Online retail platforms clocked a sale of Rs 40k crore during festive season sale: Redseer report

The online retail platforms have seen a robust 27% year-on-year growth, clocking a sale of $ 5.7 billion or Rs 40,000 crore in festival sale 1, according to a Redseer Strategy Consultants report.

As per Redseer, while this was 97% of the $5.9 billion that Redseer had projected for Festive Sale Week 1, the growth was still higher than last year.

The Festive Sale week 1 included sale events conducted by all online retail platforms between September 22 to 30. And for platforms that did not run a sale during any of these dates, the report had considered BAU order volumes. 

Some key findings of the Redseer report are given below.

Mobile phones continue to lead the market

“Mobile as a category continued to lead GMV share, contributing to 41% of the GMV, translating to 56k mobiles sold per hour​. On the other hand, fashion contributed to 20% of GMV, which grew 48% Y-o-Y from last festive,” said Sanjay Kothari, Associate Partner, Redseer Strategy Consultants.

When compared to BAU, mobile saw the highest growth at ~7X while electronics and large appliances saw ~5X growth, fashion at ~3X growth, and other categories at ~2X growth​. 

Flipkart Group maintains its leadership position, while Meesho is second largest contributor in order volume.

“Flipkart Group (Flipkart, Myntra and Shopsy) continues to maintain its leadership position with 62% market share in GMV during the Festive Sale Week 1. In terms of order volumes, Meesho, with its low AOV and high penetration in Tier-2 cities, emerged as the second largest player capturing ~21% of the market share while Flipkart Group leads here as well,” added Sanjay Kothari.

Shopper base

In terms of transacting shoppers, the number increased by 24% Y-o-Y with 65% of shoppers coming from Tier 2+ cities​. A whopping 75-80 million shoppers placed orders across all platforms in Festive Sale Week 1​. Tier 2+ cities witnessed highest Y-o-Y growth in online shoppers.

Moreover,​ the spend per online shopper increased marginally by 3% during the recently concluded festive week.​ The growth in shoppers partially comes from the vast catalogue the etailers have been able to offer, financial constructs that aid affordability and tech innovations (like live commerce) that continue to drive adoption and excitement, Redseer said.

​Outlook for the rest of festive period

While the beginning of the last quarter was slow on demand, there was a good uptick in consumer sentiment and consumption in late August/ September. This, Redseer expects, will further lead to demand recovery building up to Diwali.  ​

Info@BestMediaInfo.com