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Flipkart dominates with 48% market share, Meesho emerges as fastest growing e-commerce platform: Report
Walmart's subsidiary Flipkart commands a 48% market share in the Indian e-commerce sector, growing faster than the industry.
Walmart's subsidiary Flipkart continues to assert its dominance in the e-commerce sector, commanding a 48% market share, reported PTI, citing the AllianceBernstein report. Meesho, backed by SoftBank, has positioned itself as the fastest-growing e-commerce platform in terms of user base in India.
As per PTI news report, AllianceBernstein, a global investment management & research firm, highlighted that Flipkart's user base witnessed a robust 21% year-on-year (YoY) growth, outpacing industry competitors. Meesho experienced even more rapid acceleration at 32%, while Amazon lagged with a 13% growth in its user base, attributed to its relatively premium offerings compared to peers.
"As of FY23, Flipkart was the market leader, with a 48% share in India eCommerce, growing faster than the industry." It identifies mobile and apparel as Flipkart's largest categories, constituting approximately 50% and 30% of its mix, respectively. Flipkart is estimated to hold 48% and 60% market share in the online smartphone and online fashion markets, respectively," the report stated.
Meesho's market share growth is primarily attributed to its strategic focus on Tier 2 and smaller cities, operating through a zero-commission model. In the last 12 months, Meesho's order volume grew by 43% YoY, with a notable 54% revenue growth and around 80% repeat customers.
Meesho, with approximately 120 million average monthly active users, is identified as the fastest-growing e-commerce platform in India. The report indicated that around 80% of Meesho's sellers are retail business owners, and about 95% of the platform's selection is unbranded.
AllianceBernstein's analysis revealed Meesho's current gross merchandise value (GMV) run rate exceeding USD 5 billion, with apparel contributing to approximately 50% of GMV, while beauty and personal care (BPC) and home and kitchen each contribute in the range of 8-10%.
The research firm's report anticipates Meesho to gain incremental market share, with over 48% downloads in the Indian e-commerce landscape. However, a Nielsen Media study commissioned by Amazon India in September 2023 identified Amazon India as the most preferred online brand for respondents across the country, according to PTI's news report.
In the fashion e-commerce segment, Reliance-owned Ajio holds around 30% market share based on Monthly Active Users (MAUs), while Flipkart Group's Myntra maintains the highest market share in terms of active users, surpassing 50%. Although Myntra exhibited the highest growth rate among peers in December 2023 at 25%, the report notes a decrease in transaction frequency, with Myntra's GMV growing only 12% in FY23 compared to 35% in FY22.
Among e-grocery players, Blinkit emerges as the fastest-growing, driven by market maturity. However, Zepto, operational since April 2021, lags behind Blinkit in terms of product offerings and reach. The report positions Blinkit as the market leader in quick commerce, holding nearly 40% share, with Instamart at 37-39% and Zepto at around 20% share from a GMV perspective, said PTI in its news report.
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Business NewsCompaniesNewsFlipkart dominates with 48% market share, Meesho emerges as fastest growing e-commerce platform: Report
First Published:26 Jan 2024, 11:31 AM IST
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