E-commerce firms are estimated to have registered a 27 percent development, clocking sales worth Rs 40,000 crore, during the recently concluded seven-day festive season sale.
According to a report by Redseer Strategy Consulting, Flipkart Group, together with Myntra, Shopsy, and many others, maintains its leadership position, while Meesho is the second-largest contributor in volume order.
“With the conclusion of Festive Sale 1, the online retail platforms have seen a robust 27 percent year-on-year growth, clocking a sale of $5.7 billion or Rs 40,000 crore,” the report stated.
The firm has evaluated Festive Sale week 1 along with sale events carried out by all online retail platforms between September 22 and 30, and for platforms that did not run a sale during any of those dates, the report considered business as usual order volumes.
The growth in sales was driven by sales of mobile phones.
“Mobile as a category continued to lead GMV (gross merchandise value) share, contributing to 41 percent of the GMV, translating to 56,000 mobiles sold per hour. On the other hand, fashion contributed to 20 percent of GMV, which grew 48 percent Y-o-Y from the last festive season,” said Sanjay Kothari, Associate Partner, Redseer Strategy Consultants.
When compared to BAU (business as usual), mobile saw the highest growth at around 7 times while electronics and large home appliances witnessed about 5 times growth, fashion at about 3 times growth, and other categories at close to 2 times growth.
Flipkart Group maintains its leadership position, while Meesho is the second largest contributor in order volume, according to Redseer.
“Flipkart Group (Flipkart, Myntra and Shopsy) continues to maintain its leadership position with 62 percent market share in GMV during the Festive Sale Week 1. In terms of order volumes, Meesho, with its low average order value and high penetration in Tier II cities, emerged as the second largest player capturing around 21 percent of the market share while Flipkart Group leads here as well,” stated Kothari.
In terms of transacting consumers, the number increased by 24 percent Y-o-Y with around 65 percent of consumers coming from Tier II cities.
“A whopping 7.5-8 crore shoppers placed orders across all platforms in Festive Sale Week 1. Tier II and beyond cities witnessed the highest Y-o-Y growth in online shoppers. Moreover, the spend per online shopper increased marginally by 3 percent during the recently concluded festive week,” said Redseer.