Flipkart Group emerged as the leader during the festive sales with a 62% market share
The festive season provided a big boost to online sales this year as India witnessed its biggest ever festive sales with brands clocking a gross merchandise value (GMV) of $9.2 billion through online channels over this period, according to the recent report by RedSeer. “As has been the case for the last five years or so, online festive sales in India continued to grow at a blistering pace and saw a 23% YoY growth in GMV. A slew of new launches and easy financing options meant that mobiles continued to remain the most widely-sold product category during this time, accounting for more than a third of the total GMV,” the report said.
What’s more, the overall online shopper base grew by 25% compared to last year with 57% of the total shoppers coming from tier 2+ cities. This meant that this year’s festive sales were dictated by affordability schemes, the report added. Furthermore, Flipkart Group emerged as the leader during the festive sales with a 62% market share.
According to the report, rising consumer demand certainly contributed to the growth of overall GMV during the online festive sales. “However, e-commerce platforms also deserve credit for the steps they took to further boost this demand,” it added. The strategies to boost demand included high pre-sales marketing and campaigns including a curtain-raiser event to reveal sale prices and pre-book items at discounted prices; enabling affordability through banking partnerships and seller-driven discounts on aspirational brands to bring the most competitive price to customers and warehouse and demand planning to fulfil orders to the customers much quicker.
Interestingly, while the overall online GMV and absolute number of shoppers both increased, the GMV per user declined from Rs 6,570 to Rs 6,490 as relatively less expensive items such as fashion products saw an increase in their share of the overall GMV.
The fashion category witnessed a resurgence like never before. Driven by consumers’ desire to refresh their wardrobes and new innovative business models catering to shoppers in tier 2 cities, the sales of fashion items via online channels doubled this year. On the other hand, the categories that witnessed subdued growth this year included the likes of home furnishings, home décor, furnishings and other electronics.
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