1. E-commerce GMV: Flipkart, Snapdeal, others cap discounts, figure falls to $14 bn

E-commerce GMV: Flipkart, Snapdeal, others cap discounts, figure falls to $14 bn

The annualised gross merchandise value (GMV) of the Indian e-tailing industry took a hit and fell 19% to $14 billion in Q1 2016 (QoQ) and 5-10% to $13 billion in Q2 2016 (calendar year), according to a study by RedSeer Consulting.

By: | Published: August 26, 2016 6:24 AM
GST Bill, GST bill today, gst ecommerce, gst bill today news, gst bill in rajya sabha In order to achieve a six-fold growth in GMV to billion by 2020 from billion in 2015, the share of fashion needs to rise from the current 20% to 36% in the overall market size, alongwith a larger share of Tier 2 and Tier 3 shoppers against the current trend where metros have a strong hold.

E-commerce majors like Flipkart and Snapdeal, during this period, cut down on discounting and advertising spends to minimise cash-burn. Across a period of six quarter from Q1 2015 to Q2 2016, e-commerce GMV was at its peak of $17 billion in Q4 2015.

According to the report, in order to achieve a six-fold growth in GMV to $80 billion by 2020 from $13 billion in 2015, the share of fashion needs to rise from the current 20% to 36% in the overall market size, alongwith a larger share of Tier 2 and Tier 3 shoppers against the current trend where metros have a strong hold. Currently, electronics has the largest share at 73% which will moderate to 60% by 2020.

In 2015, electronics was leading the pack with a 73% market share, followed by fashion and home contributing 20% and 3.5%, respectively. Also, by 2020, the internet penetration in the country is expected to improve which will lead customer in Tier 2 cities to come online and avail greater selection in the fashion category. Mature markets like China and the US see 30-35% online penetration for fashion against 3% in India in 2015.

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