Main tech cities Bangalore, Pune and Hyderabad, together have contributed to 12.6 percent of the national revenue during the festive period (Amazon and Flipkart sale). They are perceived to spend more on high ASP (average selling price) products, compared to the national average, however, their spending pattern is similar to the rest of the country.
Business is getting back on track as we see a higher revenue contribution from the top 20 cities this year compared to last year and customers shopped at a higher ASP across categories and at a lower discount percentage, according to a report by the innovator of inventory optimization solutions Increff.
Looking back, the pandemic upended the retail industry in 2020, with many businesses either perishing or struggling to survive multiple lockdowns and other developments. However, with the gradual decrease in Covid cases, 2021 saw the Indian e-retail market grow by 25 percent despite a 2-month national lockdown and multiple prolonged disruptions in regional pockets over the year.
“Despite the pandemic’s large-scale disruptions, this year we observed the return of the festive cheer and delight that comes with shopping especially during the festive sales. Through this report, our aim is to instill a sense of confidence in e-tailers, especially those who have faced losses during the pandemic by showcasing that businesses across scales are bouncing back strongly more than ever now. We at Increff will continue to play the role of a catalyst in supporting the growth of Indian fashion & apparel businesses by equipping them with cutting-edge technologies like WMS to foster their growth,” said Anshuman Agarwal, Co-Founder, Increff.
Across India, North-Eastern states contributed to 7 percent of the national average revenue this festive season. Also, during the Big Billion Day and Great Indian Festival sales this year, there was a higher revenue contribution from East India as compared to West India. East also shopped at a higher ASP (Rs 1,178) and lower discount compared to the national average (54 percent).
In categories, women’s wear was shopped more (40.7 percent) as compared to Men’s (38.2 percent). Athleisure wear was also more in demand compared to jeans & trousers. Jackets and sweatshirts were one of the top choices among the buyers in the clothing categories with high revenue contributions.