Shillong, October 20: E-commerce platforms in India saw a robust beginning to the festive sale season, registering a gross merchandise value (GMV) of Rs 47,000 crore in the first week, reflecting a 19 percent growth compared to the same period in the previous year.
The data, as reported on Friday, emphasizes the market’s resilience.
As per IANS, the primary driving force behind this surge in sales was high average selling price (ASP) items, notably mobiles, electronics, and large appliances, which contributed to 67 percent of the total sales, as per a report by Redseer Strategy Consultants.
Trends indicate that low ASP categories such as fashion, beauty and personal care (BPC), and home products are anticipated to experience continued growth throughout the remaining festive season, enhancing the diversity of products on offer.
During the first week of the festive season sale, the Flipkart Group continued to lead the market, increasing its share to reach 63 percent in GMV terms. In volume terms, Meesho retained the second position, expanding its market share from 21 percent in 2022 to 25 percent of the total orders.
The report suggests that while Indian consumers are cautious about discretionary spending, they are more inclined to make purchases when they perceive good value or attractive deals.
The fact that eight out of nine days of the sale period this year fell within the ‘shradh’ period (considered inauspicious for purchases) compared to only four such days in 2022 influenced consumer behavior. This led to an emphasis on “essential upgrades” during the festive season, with high ASP categories like mobiles, electronics, and large appliances being the focus of purchases.
The final day of week 1, the only ‘non-shradh’ day, experienced a remarkable 36 percent year-on-year growth compared to the last day of week 1 in 2022.
Moreover, 30 percent of consumers who purchased high ASP categories in Week 1 made use of easily accessible financing options. Over 55 percent of the consumers who shopped during Week 1 intend to make more purchases in the remaining festive season, with a significant percentage planning to buy in the fashion category and other low ASP categories like BPC and home and living.
Major e-commerce players, including Amazon, Flipkart, Myntra, and others, initiated their festive season sales on October 7, with expectations of reaching an online GMV worth Rs 90,000 crore in the entire festive month, representing an 18-20 percent increase from the previous year’s festive month sales.
