E-commerce companies started operations in its full capacity since the beginning of June and the overall e-commerce sector has recovered at a much faster pace than anticipated, according to the latest analysis shared by Unicommerce. As per the report, the e-commerce sector has recovered over 90% of its pre-lockdown order volume.
With physical distancing still being widely practised and advised, there has been a massive jump in the adoption of online shopping by consumers across the country, the report says.
Unicommerce is a SaaS-based e-commerce platform, which has been keeping a close track on the e-commerce consumer trends as economic activity resumes across the country.
The last couple of weeks additionally showcased an interesting trend regarding ‚ÄėDirect 2 Consumer‚Äô (D2C) companies. Companies with a strong online presence and their own e-commerce website have demonstrated faster growth as compared to other brands. While marketplaces enjoy dominance in terms of the overall order share, companies with D2C presence through their own website have 25% higher recovery rate as compared to other online selling brands. In particular, companies selling electronic appliances and fashion products have seen faster growth on their D2C platform as compared to the other sectors.
Analysing the overall category growth, consumer electronic appliances category (excluding smartphones) has witnessed the strongest growth compared to any other category. The sector has not just recovered its pent up volume but also shown great improvement with over 45% growth in the overall order volume compared to pre-lockdown levels. However, the average cart size has decreased by around 5-10%, as people are ordering more low value items required to operate from home. As most of the organisations continue to work from home, there has been a significant surge in demand for products that will help professionals operate easily from home such as USB cables, extension cords, trimmers and wi-fi routers, to name a few.
On the other hand, the online fashion sector has seen an overall 70% recovery rate compared to pre-lockdown levels. However, the average cart size has decreased by around 25%. This signifies that the demand for high-value products is significantly less as compared to affordable products. The popular products in the category are nightwear and comfortable home-wear that have seen the maximum traction. In fact, a few sub-categories in fashion such as kids apparel have witnessed over 100% growth already in the last 15 days compared to the pre-lockdown levels.
This shows that companies that have developed their own online sales channels have a better understanding of the e-commerce nuances and consumer behaviour which gives them an edge over other online sellers. A similar trend is being seen across leading FMCG players who are working towards strengthening their D2C presence and rethinking their selling strategies to reach the target consumer, the report adds.
The e-commerce sector commenced operations around 45 days back and an initial recovery was anticipated due to a large amount of pent-up demand during the lockdown. The consistent growth clearly establishes the growing consumer preference of online shopping which is expected to continue in the post-COVID world. According to Unicommerce‚Äôs consumer trend analysis, the e-commerce industry is expected to fully recover and achieve the pre-lockdown order volume by the end of June.
Speaking about the report, Kapil Makhija, CEO, Unicommerce said, ‚ÄúThe e-commerce sector continues to lead the growth for the overall economy of India. The increasing change in consumer behaviour to prefer online shopping has come as a great surprise and relief for online sellers and marketplaces. This will lead to the rising adoption of omnichannel solutions by companies across sectors and focus on digital transformation to significantly improve customer buying experience with the help of relevant technology solutions. With the current pace and recovery rate, we are positive that the sector will fully recover in the next couple of weeks.‚ÄĚ
Established eight years ago, Unicommerce processes over 20% of e-commerce volume in the country and works with leading online players across segments.