Mobile handsets is expected to the top selling category for the e-commerce players during the forthcoming festive sale days this year and this will continue to drive the gross merchandise value (GMV) of the industry, according to a study...
Mobile handsets is expected to the top selling category for the e-commerce players during the forthcoming festive sale days this year and this will continue to drive the gross merchandise value (GMV) of the industry, according to a study done by RedSeer Consulting.
RedSeer however aid, e-tailers can further drive up their sales by investing more of their marketing budget, supply chain investments and strategic alliance efforts on traditional categories like large/small appliances and home products.
“This could shift consumer behaviour from offline to online spending in a big way, as consumers anyway have to purchase these categories offline during festive season,” it said.
On how best e-tailers could match or exceed their GMVs to that of the previous year, Anil Kumar, CEO, RedSeer Consulting said, “The recipe that has driven the heavily discounted mobiles category to contribute to a major chunk of e-tailers’s GMVs has been and will remain a critical one. But now that markets are more holistic, there needs to be a deeper focus on the larger goods and home segments which can be made highly profitable by providing a wider and better selection of products, brokering exclusive deals with the original equipment manufacturers (OEMs) and offering attractive discounts.”
According to RedSeer, the sales for categories of mobiles and fashion grew exponentially in the festive period, and accounted for nearly 70% of all GMV and 50% of all volumes in October 2015. Deep discounting was the key driver of growth in the mobiles’category, it revealed.
However, online sales of other categories like large and small appliances and home furnishings lagged in the 2015 festive season. These categories, which traditionally are bought extensively by customers in this part of the year, performed poorly in terms of online sales. This was because of limited selection and discounts available on these categories online which led the customers to prefer to shop offline.
As part of the mobile phone push, select mobile manufacturers have tied with their own choice of e-tailers. Samsung on Tuesday announced the launch of Galaxy On8, which will be sold online through Flipkart as part of their Big Billion Day sales celebrations from October 2.
Noor Patel, director, category management, Amazon India, said “With festive shopping on the rise, we are already witnessing a spike in demand for new devices. We are very happy that our customers across India now have the choice to purchase new feature-rich and attractively priced smartphones, enjoy fast and reliable doorstep delivery and thus have a delightful festive shopping experience.”