Key highlights
·
Mobile phones continue to
lead the market with 41% contribution in GMV; 56k mobiles were sold per hour.
·
Shopper base increased by
24% Y-o-Y from festive sale week 1 of CY21 with 65% of shoppers coming from
Tier 2+ cities.
·
Flipkart group continues to
lead the market, while Meesho emerged 2nd largest in terms of order
volume.
Bengaluru,
6 October 2022: With the conclusion of Festive Sale 1, the online
retail platforms have seen a robust 27% Y-o-Y growth, clocking a sale of $ 5.7 Bn/INR 40k Cr, according to a report by Redseer Strategy
Consultants. While this was 97% of the $5.9 Bn that Redseer had projected for
Festive Sale Week 1, the growth was higher than last year.
The Festive Sale week 1 included sale
events conducted by all online retail platforms between September 22 to 30. And
for platforms that did not run a sale during any of these dates, the report had
considered BAU order volumes.
Mobile phones continue to lead the
market
“Mobile as a category continued to lead GMV
share, contributing to 41% of the GMV, translating to 56k mobiles sold per
hour. On the other hand, fashion contributed to 20% of GMV, which grew 48% Y-o-Y
from last festive,” says Sanjay Kothari, Associate Partner, Redseer Strategy
Consultants.
When compared to BAU, mobile saw the
highest growth at ~7X while electronics and large appliances saw ~5X growth,
fashion at ~3X growth, and other categories at ~2X growth.
Flipkart Group maintains its leadership
position, while Meesho is second largest contributor in order volume
“Flipkart Group (Flipkart, Myntra and
Shopsy) continues to maintain its leadership position with 62% market share in
GMV during the Festive Sale Week 1. In terms of order volumes, Meesho, with its
low AOV and high penetration in Tier-2 cities, emerged as the second largest
player capturing ~21% of the market share while Flipkart Group leads here as
well,” adds Sanjay Kothari.
Shopper base
In terms of transacting shoppers, the
number increased by 24% Y-o-Y with ~65% of shoppers coming from Tier 2+ cities.
A whopping 75-80 Mn shoppers placed orders across all platforms in Festive Sale
Week 1. Tier 2+ cities witnessed highest Y-o-Y growth in online shoppers.
Moreover, the spend per online shopper increased marginally by 3% during the
recently concluded festive week. The growth in shoppers partially comes from
the vast catalogue the etailers have been able to offer, financial constructs
that aid affordability and tech innovations (like live commerce) that continue
to drive adoption and excitement.
Outlook for the rest of festive period
While the beginning of the last quarter was slow on demand, there was a good uptick in consumer sentiment and consumption in late August/ September. This, Redseer expects, will further lead to demand recovery building up to Diwali.
About
Redseer Strategy Consultants:
Redseer
Strategy Consultants is a leading strategy consulting firm. Founded in 2009,
Redseer works with new-age consumer-focused businesses and offers growth
advisory, digital strategy, and investment thesis. The company is a thought
leader in the Internet economy space and is the most widely quoted consulting
firm in the media.
The
company boasts a 90% + market share of new-age IPOs. Zomato, India’s first
major consumer tech IPO; GoTo, one of the world’s largest consumer tech IPO,
Nykaa, Paytm, Cartrade, and Delhivery are other noted IPO engagements of
Redseer. The company enjoys more than 50%+ market share in the new-age deal
advisory and a lion’s share in the strategy consulting space. Today
Redseer has a strong presence in India, the Middle East, Southeast Asia, the
USA, and the UK. The company is headquartered in Bengaluru and has a formidable
team of 200+ consultants in 7 offices across India and overseas.
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