Smartphones led the festive sales with smartphones worth Rs 1.5 crore being sold every minute on e-commerce sites. They accounted for 47% of total festive sales.
E-commerce platforms including Flipkart and Amazon sold products worth Rs 29,000 crore ($4.1 billion) in the first week of festive sales between October 15-21. According to a report by consulting firm RedSeer, this is a 55% growth compared to last year when e-commerce platforms saw sales worth around Rs 19,000 crore ($2.7 billion).
According to RedSeer, Flipkart dominated e-commerce sales in the first week accounting for 68% of the total Flipkart group and Amazon sales. Flipkart group would also include Myntra and 2GUD, and these three sites together command over 90% of total online sales. Flipkartâ€™s dominance, RedSeer says, was led by a high share of Tier 2+ shoppers.
Fashion, while not as big a sales contributor as last year, grew this year to reach 14% of the festive days sales, despite the demand for formal and festive wear still being low. Long tail categories including Home and Home Furnishings have done better due to high demand for work- from-home and study-from-home infrastructure.
The biggest growth lever this year has reportedly been a massive addition of shoppers. The total shoppers during the first week jumped from 28 million last year to 52 milliom this year (85% y-o-y). With >55% of these shoppers coming from tier 2 cities.
The key themes that boosted this yearâ€™s sale include affordability, mobiles, tier II growth wave, availability of stock items which directly resulted in recovery of sales for brands and sellers who have been enabled by the online channels to drive their sales growth which was affected by the COVID impact on offline channels, the report stated.
However, the report observes that the gross merchandise value per customer dropped from around Rs 6,800 last year to around Rs 5,500 this festive season.
â€śeCommerce sector has exceeded the aggressive forecasts we had made a few weeks before the festive season week 1 started out. This points to a revival of consumption sentiment amongst Indianshoppers, where they have been shopping online in big numbers driven by massive selection, great prices and the convenience and safety of shopping from home. In many aspects this is indeed a #festivaloffirsts for Indian eCommerce which will build a strong foundation for its future growth,â€ť said Mrigank Gutgutia, Director at RedSeer Consulting.