During the first four days of their flagship festive season sales events, India’s largest e-commerce players by market share, Amazon and Flipkart, have collectively raked in $3.5 billion (about Rs 26,000 crore), with both online markets on track to meet expectations for the entire seven-day span.
From October 15 to October, market analysts Forrester Research and RedSeer Consulting pegged combined revenues by the two e-tailers at around $4.7 billion on average.
Manish Tiwary, Vice President of Amazon India, told ET, “The first few opening days of festive sales are skewed towards large-value transactions and new launches.”
Tiwary said more than 1,100 new product releases took place on Amazon this year, including the highest two-day sales of consumer-facing brands such as Samsung, Apple, Xiaomi, OnePlus, Asus, Lenovo, HP, LG, Whirlpool, and Bajaj Appliances.
A Walmart-owned Flipkart spokesperson said that more than half of all electronic products purchased by customers on its platform were in the work-from-home category, with large-screen TVs, tablets, IT accessories, and peripherals seeing a rise of over 1.4x from the levels of last year.
Sales at Amazon and Flipkart crossed $2.7 billion (about Rs 20,000 crore) during the six-day event in October 2019, a 30 percent rise from $2.1 billion in 2018, according to RedSeer’s estimates. On the other hand, Forrester Research last year pegged the one-week numbers at around $3.6 billion.
The overall e-commerce industry, too, grew by 25-30 percent over the four-day period, according to e-commerce firms, top brands, and independent analysts. Compared to last year, the sector is on track to increase revenue by 30-36 percent during the one-week period, the early numbers suggest.
In categories that had seen inventories piling up — such as high-end smartphones, apparel, and furniture, the highest discounts were given. The discounts have, however, been much smaller for categories such as televisions and home appliances because of stock shortages.
Overall, according to separate estimates by RedSeer and Forrester Research, which said the numbers would be boosted by new online shoppers, e-commerce sales over the extended 30-day period are expected to grow to $6.5-$7 billion ( Rs 48,000 crore to Rs 51,800 crore). According to Forrester, about 75 percent of festive season sales are registered between October 15 and October 21 in just one week.
Industry managers said that in the four days compared to the same time last year, top brands, including Samsung, Apple, LG, and Xiaomi, saw sales rise by 80-100 percent across smartphones and consumer durables via e-commerce channels.
During the sales cycle, average spending on smartphones has increased, with the market skewing towards e-commerce transactions, said Tarun Pathak, associate director of Counterpoint, a smartphone industry researcher.
The value-focused e-commerce platform said on Snapdeal, the home goods segment selling kitchen appliances, linen, home décor, and LED lights grew 30 percent over last year, overtaking fashion, historically the top performer during the sales season.