As the festival season draws near, so do online sales. Consultancy Redseer Strategy Consultants projects 2023 e-tailing festive month sales to be around Rs.90,000 crore, up 18-20 pc year-on-year. Redseer projects the 2023 festive season to be driven by about 140 million shoppers.
Over the last 10 years, the annual GMV for overall e-tailing industry has grown almost 20 times. In 2014, the industry clocked a GMV of Rs.27,000 crore in the whole year, while this year, the same is expected to be Rs.5,25,000 crore. The number of annual transacting users has jumped 15x, according to the consultancy.
The e-tailing industry recorded 10 pc y-o-y GMV growth in the Jan-Jul period, and with the broader economy coming back to business-as-usual levels, this festive season is likely to catalyse online consumption demand.
The festive season is likely to see higher contribution from high-margin categories such as Beauty and Personal Care, Home and General Merchandise, and Fashion etc.
“Over the last several quarters, we are seeing enhanced GMV contributions from categories beyond electronics. While electronics sell a lot in the festive period, looking at the bigger picture and comparing the festive sale periods over the last several years, there is a clear trend of category diversification. This is good for the ecosystem as it shows consumers’ willingness to purchase multiple categories online and more brands coming to cater to their needs. Continuing with this trend, we expect increasing GMV contributions from non-electronics categories like Fashion, BPC, Home General Merchandise and more this festive period,” said Mrigank Gutgutia, Partner at Redseer Strategy Consultants.
Redseer also sees multiple other sub-themes playing out, such as D2C brands being more prominent. New-age technology solutions like generative AI being more widely adopted during the sale period will also lead to better and novel consumer experiences and drive stronger growth momentum, according to Redseer.
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