[ad_1]
NEW DELHI: Indian e-commerce platforms are collectively expected to clock sales worth Rs 90,000 crore this festive season, according to a report released by consulting firm Redseer Strategy Consultants. This would translate into an estimated 18%-20% growth over the previous season. The sales are expected to be driven by some 140 million shoppers who are likely to make online purchases at least once during the festive season which typically runs from the onset of Navaratri to Diwali. The festive period is projected to drive about 17% of the annual e-commerce sales for the year(CY2023). “E-tailing sales growth in the past couple of quarters has been the lowest historically. With the economy normalising, the festive season will catalyse demand,” analysts at the firm said.
Major e-commerce firms like Flipkart and Amazon offer a plethora of deals during the festive season to get more users to transact on the platforms. In fact, through the course of the past few festive seasons, companies have attracted a lot of new users from non-metros and small towns who often like to compare offers across platforms before adding items to the shopping cart. Coming in the wake of tricky inflation and a depressed job market marked by layoffs, this festive season sales may see more consumers hunting for online deals. Analysts said that while earlier electronics used to drive a large part of the e-commerce festive sales, the trend is changing now and more categories are increasingly contributing to the sales mix. “Over the last several quarters, we are seeing enhanced GMV (gross merchandise value or platform sales) contributions from categories beyond electronics….continuing with this trend, we expect increasing GMV contributions from non-electronic categories like fashion, BPC (beauty and personal care), home and general merchandise and more this festive period,” said Mrigank Gutgutia, partner at Redseer. Another consumption shift is that of premumisation which is leading to higher average selling prices.
Anticipating a surge in demand, companies are already hiring temporary workers. Flipkart, for instance, recently said that it will create over 1,00,000 new seasonal job opportunities across its supply chain including fulfilment centres, sortation centres and delivery hubs in the run up to the festive period. “After significant external shocks like Covid, Russia-Ukraine war, liquidity tightening over the last three years, consumption growth in India may finally be approaching steady, business-as-usual levels,” analysts said.
Major e-commerce firms like Flipkart and Amazon offer a plethora of deals during the festive season to get more users to transact on the platforms. In fact, through the course of the past few festive seasons, companies have attracted a lot of new users from non-metros and small towns who often like to compare offers across platforms before adding items to the shopping cart. Coming in the wake of tricky inflation and a depressed job market marked by layoffs, this festive season sales may see more consumers hunting for online deals. Analysts said that while earlier electronics used to drive a large part of the e-commerce festive sales, the trend is changing now and more categories are increasingly contributing to the sales mix. “Over the last several quarters, we are seeing enhanced GMV (gross merchandise value or platform sales) contributions from categories beyond electronics….continuing with this trend, we expect increasing GMV contributions from non-electronic categories like fashion, BPC (beauty and personal care), home and general merchandise and more this festive period,” said Mrigank Gutgutia, partner at Redseer. Another consumption shift is that of premumisation which is leading to higher average selling prices.
Anticipating a surge in demand, companies are already hiring temporary workers. Flipkart, for instance, recently said that it will create over 1,00,000 new seasonal job opportunities across its supply chain including fulfilment centres, sortation centres and delivery hubs in the run up to the festive period. “After significant external shocks like Covid, Russia-Ukraine war, liquidity tightening over the last three years, consumption growth in India may finally be approaching steady, business-as-usual levels,” analysts said.
[ad_2]
Source link
