Online Festive season sale: Indian small sellers expect at least a 15 per cent growth in online sales from the previous year’s festive season, stated a survey report by the consultancy firm Redseer. The survey report of small sellers by Redseer released on Friday states that despite modest sales growth on e-commerce platforms recently where only 40 per cent of the participants showed over 10 per cent growth, the anticipation for the festive season is high among the small sellers.
A median growth of 26 per cent in sales and a minimum 15 per cent growth from the previous year is expected by the sellers. To achieve this, businesses are willing to increase their spending on marketing by 15 per cent from the previous festive season, and 50 per cent ad spending growth from the Business as usual periods of this year. However, smaller businesses plan to spend more on ads by 22 per cent from the previous year, and 75 per cent growth vs. business as usual.
A large segment of the participants, about 62 per cent, believe that the e-commerce platforms have made efforts to support businesses in festive season planning through tailored solutions. The sellers have reported receiving support from the platforms in terms of data analytics, trends predictions, and consumer viability, among others.
“Our interactions with the seller prior to this 10th eCommerce festive season reaffirms the transformative impact eCommerce has on these MSMEs. The festive period is expected to enable sellers especially the smaller ones to come out of the challenging sales environment seen through this and sellers are optimistic about strong sales growth. Accordingly, they are willing to significantly ramp up their advertising spending on the e-commerce platforms during this festive period”, says Mrigank Gutgutia, Partner at Redseer Strategy Consultants.
According to Redseer, the e-commerce penetration rate is very low, roughly 2-3 per cent, with 1.5-2.5 million online sellers, which is likely to double to 5-6 per cent by 2027, reaching 5.5-6 million online sellers.
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While online retail overall is anticipated to grow at a compound annual growth rate (CAGR) of 25 per cent through FY27, MSMEs will outgrow online retail substantially at a CAGR of 60-70 per cent, adding $50 billion to the online retail market in India.