- Massively led by Amazon and Flipkart, the growth of the e-tailers year-on-year during the 6-day sale was 30%, the study said, forecasting 60-65% growth with a GMV of $3.7 billion.
- Walmart-owned Flipkart crossed Amazon’s GMV shares this year holding a 60-62 percent share of standalone GMV during festive sales and a 63 percent share if other entities (Myntra and Jabong) are included, the study said.
A report reveals the e-retailers earned a whopping $3 billion with a large chunk of customers from Tier-2 cities or Bharat As the e-commerce sector’s festive sales ended last week, e-retailers in India achieved a record $3 billion (about Rs 19,000 crore) Gross Merchandise Value (GMV) over the duration (September 29-October 4), as reported by the consulting firm RedSeer.
Massively led by Amazon and Flipkart, the growth of the e-tailers year-on-year during the 6-day sale was 30%, the study said, forecasting 60-65% growth with a GMV of $3.7 billion.
Walmart-owned Flipkart crossed Amazon’s GMV shares this year holding a 60-62 percent share of standalone GMV during festive sales and a 63 percent share if other entities (Myntra and Jabong) are included, the study said. While, the GMV growth of Amazon was 22 percent year-on-year, and its volume growth rate was more than 30 percent year-on-year.
Tier-II and III cities contributed a large share of customers to drive the growth of festive sales. “The festive season’s biggest trend was’ price shopping,’ as demonstrated by a significant number of customers from Tier 2 + cities who shopped online due to a wide selection of initiatives meant to be affordable,” the study said.
Before sales, RedSeer had predicted a 60% rise in the number of online shoppers from 20 million last year to 32 million this year, with most shoppers coming from Tier-2 cities suggesting last-mile deliveries and breaking vernacular problems.
Manish Tiwary, Vice President, Category Management, Amazon India said events such as the Great Indian Festival helped the company take online the next 100 million customers, many of them from Tier 2, 3 or even 4 cities.
Tiwary added that “We have witnessed an increase in the number of sellers wishing to register in the last three to four months, beginning with local craftsmen, weavers, major sellers, and brands. In addition, they are lining up new products for the festive season and consumers can choose from over 200 million products this festive season.”
While the report also predicted that consumer willingness to buy mobile phones will likely fall to 40% compared to last year (55%). Once again, however, mobiles emerged as the class king, leading in the festive days to over 55% of GMV.
Anil Kumar, Founder, and CEO of RedSeer Consulting said, “Despite challenging macro climate, the first wave of the festive sale event saw GMV records of nearly $3 billion, suggesting that online shopping remains bullish in consumer sentiment.
The bigger push came from tier II consumers moving to online shopping led by the strong value provided by online retailers across categories like phone, which showed a strong surge in sales events despite having a relatively slow-growing H1 2019. “According to RedSeer, sales are expected to generate up to $6 billion or Rs 39,000 crore throughout the festive month.