- According to Bengaluru-based research firm RedSeer Consultancy, Walmart-owned Flipkart and Amazon dominated 90% of the market share as demand rose from smaller cities and towns this year–indicating that consumer spending in the country has only increased despite slowdown fears.
- Led by Amazon and Flipkart, e-commerce retailers in India achieved a Gross Merchandise Value (GMV) record of $3 billion (nearly Rs 19,000) in the first six days of the September 29-October 4 festive sale.
With the second wave of festive sales coming to an end, industry experts say e-commerce players like Amazon and Walmart-owned Flipkart are set to celebrate a Diwali bumper pocketing over Rs 35,000 crore (nearly $5 billion) despite severe economic gloom in some sectors.
Led by Amazon and Flipkart, e-commerce retailers in India achieved a Gross Merchandise Value (GMV) record of $3 billion (nearly Rs 19,000) in the first six days of the September 29-October 4 festive sale.
According to Bengaluru-based research firm RedSeer Consultancy, Walmart-owned Flipkart and Amazon dominated 90% of the market share as demand rose from smaller cities and towns this year–indicating that consumer spending in the country has only increased despite slowdown fears.
The shift from offline to online spending and a slow first half this October helped to push sales. Online sales, mainly shared by Amazon and Flipkart, are expected to generate up to $6 billion (Rs 39,000 crore) throughout the month of October.
According to Forrester, consumers in Tier 3 are not far from customers in Tier 1 and Tier 2 cities who spend more online during this festive season.
“In this festive season, online buyers in Tier 3 cities should spend more online than last year as they become more comfortable with digital platforms and access to brands and affordable financing options. This is an encouraging sign for online marketplaces that need these customers to buy more frequently and in more categories,” Forrester explained.
In September, as the festive season started, the third-largest e-commerce player Snapdeal recorded 87 million visits on its website.
Source- Hindustan Times
Snapdeal’s traffic has risen 61 percent on its websites and mobile sites in the last year alone.
“Snapdeal’s growing volumes are built on a sound and granular understanding of the value in Bharat-focused e-commerce. Our ability to build scale along with favorable unit economics gives Snapdeal an enormous competitive advantage,” said Kunal Bahl, CEO, and co-founder, Snapdeal, to IANS.
According to Anil Kumar, Founder and CEO of RedSeer Consulting, the first wave of the festive sale event saw a record gross merchandise value (GMV) of nearly $3 billion amid challenging macroclimate, suggesting that online shopping’s consumer sentiment remains bullish.
“The bigger push came from’ Bharat ‘ consumers moving to online shopping led by the good quality offered by online retailers across categories like mobile phones, which showed a strong increase during the sales event,” he said.
During the festive season, digital buyers in Tier 3 cities made a major contribution to spending more online compared to last year as they become more comfortable with e-commerce retailers and gain access to brands and affordable financing options.
“This is an encouraging sign for online marketplaces that need to buy more frequently from these customers in more categories,” Forrester said in his latest report.
