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Online sees over 40% YoY growth for all months in June quarter: Redseer

As per Redseer, India’s online retail landscape remains on a robust growth trajectory despite the transition to offline

Despite the resurgence of offline retail, online is on a robust growth trajectory with 40-60% year-on-year (YoY) growth for all the months in the June quarter, as per Redseer.

The world had made a switch to online owing to the COVID-induced pandemic. In the last few months, however, offline channels are slowly opening up.

India’s online retail landscape remains on a robust growth trajectory despite the transition to offline, in fact, in April, May, and June this year, close to 40-60% YoY growth was observed.

Redseer further said that new eCommerce models are catering to unsolved consumer needs.

Over the past decade, eCommerce has evolved faster than any other industry. The needs of consumers have been met faster than ever before, and new questions have been raised about what the retail experience should look like. The answer has been to build a better experience and improve the way we interact with the brands we love most. This has led to some of the most impressive customer experiences in the world and has also given rise to some of the most innovative eCommerce platforms.

Interestingly, we saw that the growth trajectory has been robust for new eCommerce models who have gained share steadily in fashion and grocery categories

Quick commerce has become a hot favourite and it shows with its 10x growth YoY. In its most recent report, Redseer saw that this exciting sub-segment is ready to grow 15x in just three years, to reach a market size of $5 billion.

Another impressive sector is social commerce, which involves buying products and services from other people on social media. It includes buying products or services from influencers, finding products or services on social media platforms and using social media platforms to share products or services with others. This sub-segment is on a growth spurt as it effectively solves problems for affordability and customer experience. Owing to a high referral share, this also is a low CAC model, stated the report.

Redseer further said that the market is well set for strong GMV growth and continued strong share of Tier 2+ shoppers.

With a CAGR of 38%, the market is well set for strong GMV growth, and a GMV of Rs 4.9 lakh crore is expected in 2022. Additionally, a strong share of Tier-2 online shoppers is also expected to drive this growth further. Sustainable growth is the key- new ecommerce players need to find the right combination of aggressive monetisation (via ads, relevant higher margin products and others) while doubling down on their inherently lower CAC model to achieve EBITDA profitability at scale.

Larger players are likely to adopt these models more aggressively in the coming years and the sector will undoubtedly witness more M&A activities. Additionally, this emerging sector will also witness innovation in business models to expand topline and control costs.

Tags: Redseer
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