Flipkart Group trumps Amazon in festive sales: Redseer
- This year’s festive sales saw 88% customer growth from last year, as close to 40 million shoppers from tier-2 and beyond cities tapped e-commerce platforms
Flipkart Group, including Myntra, dominated as India’s online retailers clocked a 65% jump in gross merchandise value (GMV) during festive season sales this year buoyed by pent-up demand and shopper worries on visiting retail stores during the pandemic.
The period, which stretched from mid-October to November, saw $8.3 billion in GMV, up from $5 billion last year, according to management consulting firm Redseer.
The Flipkart Group comprised 66% of the overall GMV and Amazon the remainder.
This year’s festive sales also saw 88% customer growth from last year, as close to 40 million shoppers from tier-2 and beyond cities tapped e-commerce platforms.
Overall, 88 million shoppers purchased goods on e-commerce platforms this festive season, with 55% coming from tier-2 towns, and 45% from metros and tier-1 cities.
This is sharply higher from last year’s 47 million shoppers.
Factors like presale awareness, pent-up demand by customers, wide selection across categories, disruption of offline stores along with multiple credit and affordability features helped major e-commerce players drive growth this year.
“One clear lesson from this festive season is that e-commerce has become more mainstream than ever. And it has proven that with the right assortment at the right prices, which is delivered quickly in the safety of customer’s homes—the value proposition of e-commerce is very powerful,” said Mrigank Gutgutia, director, e-commerce, Redseer Consulting.
“Thus, it is imperative for brands and sellers to shift their focus to online quickly and enable a seamless online experience for the customer in order to thrive in a post-covid world,” Gutgutia said.
In the category mix, smartphones continued to dominate across categories, with an increasing share of buyers from tier-2 cities.
With covid forcing individuals to work from home, even electronics and large appliances saw a jump, clocking 29% of the overall GMV, during this festive sale.
On the other hand, fashion took a minor hit with restrictions on stepping out and work from home becoming the new norm.
Overall GMV per customer dropped to ₹6,600 from ₹7,450 last year, according to Redseer.
Earlier, Mint had reported that 52 million shoppers had flocked to e-commerce websites in the first week of 2020 festive sales, with 57%, or 31 million customers, coming from smaller cities and towns.
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First Published:27 Nov 2020, 08:54 AM IST
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