Amazon, Flipkart make 19000 cr in festive sales: A report shows the festive sales earned e-tailers a whopping $3 billion with a large part of customers from Tier-2 cities or Bharat
As festive sales received by the e-commerce sector ended last week, the e-tailers in India reached a record $3 billion.
(Amazon Flipkart make 19000 Cr) of Gross Merchandise Value (GMV) during the season (Sep 29-Oct 4), as per a report by consulting firm RedSeer.
Massively led by Amazon, Flipkart, the e-tailers’ year-on-year increase during the 6-day sale was 30%, told the report, which had foretold a 60-65% increase with a $3.7 billion GMV.
Walmart-owned Flipkart exceeded the Amazon’s GMV share this year including a 60-62% standalone
GMV share as the festive deals and 63% share if other entities include (Myntra and Jabong), stated the statement. Meanwhile, Amazon’s GMV year_on_year growth was 22 %, and its volume growth rate year-on-year was Higher than 30%
Among buyers, tier II and III cities provided a significant share in making the festive sales growth. “The most important theme of the festive season was ‘value shopping’ as shown by a large part of customers from Tier 2+ cities.
who bought online owing to wide range supposed by affordability initiatives,” stated the report.
Before the sales, RedSeer had prophesied a 60% jump in the number of online shoppers from 20-million last year to 32 million this year,
with the majority of Buyers coming from Tier-2 cities indicating last-mile deliveries and breaking of internal difficulties.
In a statement by ET, Manish Tiwary, Vice President, Category Management,
Amazon had announced that events like the Great Indian Festival helped the firm make the following 100 million-customers online, many of these from tier 2, 3 or even four towns.
Tiwary had replied that “In the last three to four months, we have seen an expedition in the number of sellers needing to register,
Beginning from local artisans, weavers to large sellers and brands. They are following up new products for the festive season, and customers can choose from over 200 million products this festive season.” This strategy appears to have paid off.
In the meantime, the report foretold willingness customers buy mobiles likely to drop to 40% as compared to last year (55%). However, once again, mobiles emerged as the category king according to over 55% of GMV in the festive days.
Anil Kumar, Founder, and CEO, RedSeer Consulting, stated, “The first wave of the festive sale event has witnessed record GMV of almost $3 billion despite challenging macro environment,
Meaning that consumer sentiment on online shopping remains bullish. The more general push has come from Bharat customers moving to online shopping made by the strong value given from the online retailers across categories including mobiles,
which have shown a great surge during sale event despite having a relatively slow-growing H1 2019.”
As per RedSeer, the whole festive-month is required to generate up to $6 billion or Rs 39,000 crore in sales.