Bengaluru: According to the latest report released by homegrown firm RedSeer Consulting the first week of Online Festive Sales of 2021 saw 23% YoY sales growth in 2021 that is $4.6 billion (INR 32,000 crore) of goods have been sold online from brands and sellers during the festive sales.
Earlier, RedSeer Consulting had forecasted a sale of $4.8 billion in the first week of the festive sale.
Further, the overall online shopper base grew by ~20% compared to last year with Tier II contributing to ~61% of all shoppers. Also, the overall GMV per shopper has grown by 1.04X – indicating an inherent aspiration in the shopper.
The key themes that drove festive sales online this year are-
- Fashion Makes a Comeback– After a poor showing during last year’s festive, customer demand for fashion was back this year with affordable models and new platforms targeting Tier II users
- Mobiles strong showing- Rs 68 crore of mobiles purchased every hour during the festive sale across platforms during the festive sales!
- Tier II continues to show up- Tier 2 population continue to show up during festive sales on the different platforms largely enabled by various affordability schemes.
- Super Quick Deliveries– eCommerce platforms were able to shave an average of 5hrs on delivery timelines to customers with better warehouse planning and streamlined supply chain
- Online Channels continue positive adoption– The festive sales this year proved that brands and sellers selling online have reason to be bullish about the future of sales online – with increased adoption in Tier II+ cities and newer customers coming online for the first time.
On the categories front, Mobiles and appliances remained strong this year driven by new launches, and smart upgrade plans of brands. Additionally, Rs 68 crore of smartphones was purchased every hour across the platforms.
Fashion also saw demand as customers wanted to refresh their wardrobe and the reach expanded as newer affordable platforms reached Tier II + customers. However, the demand for other categories like Home furnishings, Home Décor and Furnishings have been subdued during the festive season this year.
It has been seen that Flipkart Group emerged as the leader during the festive sales with an impressive 64% market share.
“The festive season this year has been one that is driven by a larger theme of affordability. Constructs were built carefully by the platforms through BNPL schemes and bank tie-ups as well as seller driven discounts to serve up the most competitive prices of top leading brands and serve the aspiring customer,” said Ujjwal Chaudhry, associate partner at RedSeer Consulting.
