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Smartphone sales drive online festive sales to Rs 24,500 crore

E-commerce players usually hold up to three sales leading to Diwali, usually a month-long one between September and October.

Smartphone sales drive online festive sales to Rs 24,500 crore
While smartphone sales have always been the highest on e-commerce platforms, during the ongoing sale season, they recorded a growth of 30% over the same period last year, according to management consulting firm Redseer. (Photo: Pixabay)

As the country gears up for the launch of 5G services next month, smartphones have driven sales of e-commerce platforms Amazon, Flipkart and others, during the first four days (September 22-25) of the ongoing festive season sales.

While smartphone sales have always been the highest on e-commerce platforms, during the ongoing sale season, they recorded a growth of 30% over the same period last year, according to management consulting firm Redseer.

During the first four days, the platforms saw sales worth Rs 24,500 crore, of which Rs 11,000 crore was through sales of smartphones. 

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iPhone 12, 13 and OnePlus devices mainly drove smartphone sales, on the back of discounts by Amazon and Flipkart.

Mobiles are having a bull run. We are expecting a total sale of about 9 million to 10 million units of mobiles for festive week one. E-commerce platforms, along with partners, were able to bring the aspirational brands (like) Apple (and) OnePlus to a reasonable price-point, enabling average consumers to afford them,” said Sanjay Kothari, associate partner, Redseer Strategy Consultants.

Buy-now-pay-later (BNPL) schemes that the platforms ran further provided a boost to smartphone sales, analysts added.

The second-biggest driver of sales was the fashion category, with an estimated sale of Rs 5,500 crore, or accounting for about 22% with Myntra, Ajio, Nykaa and others participating. This was a 4.5x jump in terms of daily average gross merchandise value (GMV) from business as usual (BAU) days.

Analysts said the demand was largely fuelled by consumers’ need for wardrobe improvement. Overall, the year’s festive season week is going “better-than-anticipated” with about 60% of Redseer’s projections already met.

Despite the growth in sales, the average ticket size is estimated to be at the same level as last year.

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“The average ticket sizes have been trending downwards over the years — from Rs 7,350 in 2018 and Rs 6,750 in 2019 — as the  share of smartphone sales in the total festive GMV is coming down,” Kothari added.

This is because the share of mobile phones in the overall sales has come down in the last few years from 53% to around 45%. E-commerce players usually hold up to three sales leading to Diwali, usually a month-long one between September and October. The first of these sales is usually the largest and accounts for more than 50% of the sales during the festive period, Redseer said.

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