E-Commerce Firms Clock Rs 40,000 Crore Sales In Festive Season Sale: Report

by PTI - Oct 7, 2022 08:54 AM +05:30 IST
E-Commerce Firms Clock Rs 40,000 Crore Sales In Festive Season Sale: ReportSource: Firstpost

E-commerce firms are estimated to have registered a 27 per cent growth, clocking sales worth Rs 40,000 crore, during the recently concluded seven-day festive season sale, a report said on Thursday.

Flipkart Group, including Myntra, Shopsy etc, maintains its leadership position, while Softbank-backed Meesho pipped Amazon to become the second-largest contributor in order volume, the report by Redseer Strategy Consulting said.

''With the conclusion of festive sale 1, the online retail platforms have seen a robust 27 per cent year-on-year growth, clocking a sale of USD 5.7 billion or Rs 40,000 crore,'' the report said.

The firm has done an analysis of festive sale week 1, including sale events conducted by all online retail platforms between September 22 and 30, and for platforms that did not run a sale during any of these dates, the report considered business as usual order volumes.

According to the report, Flipkart Group led the festive sale 1 with around 62 per cent share in terms of gross merchandise value (GMV) followed by Amazon with GMV of around 26 per cent.

''In terms of order volume, Flipkart group leads the market with about 49 per cent share and Meesho ranks second with about 21 per cent order share,'' the report said.

Amazon spokesperson called the report speculative ''without robust and transparent methodology especially as these have not been shared with us''.

The company said it has received the highest ever order during the first 12 days of the festive sale.

''We witnessed the highest-ever start to the event in the first 48 hours, with 8 times sales as compared to the average business days. This response is reflected across all categories, and we have overall seen a substantial increase in visitors versus 2021. Our seller community received significantly more orders compared to last year and are humbled by the response from customers and are grateful to our sellers and brand partners,'' Amazon spokesperson said.

The growth in sales was driven by sales of mobile phones.

''Mobile as a category continued to lead GMV (gross merchandise value) share, contributing to 41 per cent of the GMV, translating to 56,000 mobiles sold per hour. On the other hand, fashion contributed to 20 per cent of GMV, which grew 48 per cent Y-o-Y from last festive season,'' Redseer Strategy Consultants Associate Partner Sanjay Kothari said.

When compared to BAU (Business As Usual), mobile saw the highest growth at around 7 times while electronics and large appliances saw about 5 times growth, fashion at about 3 times growth, and other categories at close to 2 times growth. Flipkart Group maintains its leadership position, while Meesho is the second largest contributor in order volume, according to Redseer.

''Flipkart Group (Flipkart, Myntra and Shopsy) continues to maintain its leadership position with 62 per cent market share in GMV during the festive sale week 1. In terms of order volumes, Meesho, with its low average order value and high penetration in Tier-2 cities, emerged as the second largest player capturing around 21 per cent of the market share while Flipkart Group leads here as well,'' Kothari said.

In terms of transacting shoppers, the number increased by 24 per cent Y-o-Y with around 65 per cent of shoppers coming from Tier 2 cities.

''A whopping 7.5-8 crore shoppers placed orders across all platforms in festive sale week 1. Tier 2 and beyond cities witnessed the highest Y-o-Y growth in online shoppers. Moreover, the spend per online shopper increased marginally by 3 per cent during the recently concluded festive week,'' Redseer said.

(This story has been published from a wire agency feed without any modifications to the text. Only the headline has been changed.)

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