With the conclusion of Festive Sale 1, the online retail platforms have seen a robust 27% Y-o-Y growth, clocking a sale of $ 5.7 Bn/INR 40k Cr, according to a report by Redseer Strategy Consultants. While this was 97% of the $5.9 Bn that Redseer had projected for Festive Sale Week 1, the growth was 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.
“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,” says 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 (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,” adds Sanjay Kothari.
In terms of transacting shoppers, the report revealed that the number increased by 24% Y-o-Y with ~65% of shoppers coming from Tier 2+ cities. A whopping 75-80 Mn 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.
“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,” the report stated.
