New Delhi: Amid last year’s pandemic, Indian shoppers helped e-commerce platforms reach $ 7.4 billion (around Rs 52,000 crore) in total gross goods value (GMV) during holiday month (October-December). This year, as retail stores reopen and Covid cases slow, Indians are expected to buy goods worth $ 9 billion (Rs 64,000 crore) from online platforms.
Strong online festive sales are expected despite opening offline to near pre-Covid levels and in the first week of celebration alone – which starts from October 3 with ‘Big Billions Day’ (BBD ) from Flipkart, Amazon’s Great Indian Festival, and Reliance’s online mode. – retailer Ajio as main players – e-commerce players are expected to achieve sales worth $ 4.8 billion (Rs 33,600 crore), a 30% increase over the year latest, according to the latest data from Bengaluru-based market research firm RedSeer.
In 2020, e-commerce platforms recorded nearly $ 3.7 billion (around Rs 25,900 crore) in GMV during the first week of festive sales.
Ahead of the holiday season, Amazon India has significantly expanded its network of operations. It has increased its storage capacity by 40% with more than 60 distribution centers in 15 states, offering 43 million cubic feet to its sellers.
It now has more than 1,850 delivery stations, owned and operated by Amazon as well as delivery service partners, to extend its direct reach, including to remote cities.
âOur continued investments in our fulfillment and delivery network infrastructure will allow us to better support our customers, with the convenience they need, and to deliver safely with a seamless, fast and reliable experience during peak season. holidays, âsaid Akhil Saxena, vice president, Client Processing Operations, APAC, MENA and LATAM, Amazon.
Flipkart, owned by Walmart, said it connects more than 5,000 offline retail stores from more than 300 cities to its platform. This includes both small and large format branded stores offering fashion, major appliances, mobile and consumer electronics products.
âWe are proud to facilitate market access for Pan-Indian consumers for more than 5,000 branded retail stores. We look forward to expanding this program over the next few months and manufacturing branded retail partner products that may be available to a much wider audience across India, âsaid Rajneesh Kumar, Chief Business Officer company, Flipkart Group.
Ajio, the online fashion retailer of Reliance Group, is also set for its âbig bold saleâ until October 4. The company offers a catalog comprising over 6 lakh styles from over 2,500 brands.
According to RedSeer, this year’s growth will be primarily driven by accelerated online adoption, which has been observed as an effect of Covid.
âTier 2+ cities will continue to drive growth as they represent 55-60% of the total buyer base this year, which is similar to or greater than 57% in 2020 on public holidays. On the other hand, as offline retail and mobility recover almost to pre-Covid levels, this will impact festive online sales, as customers can also opt to shop offline â , notes the report.
While mobiles will continue to dominate thanks to new launches, electronics is expected to experience the second highest demand, due to the wide range of choices, easy payment options including EMI and Buy Now Pay Later (BNPL), among other factors.
In addition, fashion is also expected to experience a steady recovery this holiday season with greater outdoor mobility of consumers and a constant rebound in fashion and office wear.
“We believe the 2021 online festive sales will continue to benefit from the favorable winds of greater digital consumer adoption, supported by increasingly positive macro and consumer sentiment following the passage of the second wave of Covid. “said Mrigank Gutgutia, associate partner at RedSeer.
Almost 80% of sellers agree that festive sales will play a key role in recovering from Covid losses, while 70% agreed that the biggest players online have been supportive and positive, leading to the event. of sale.
The overall online GMV this year is expected to reach $ 49-52 billion, a growth of about 37% over last year, mainly due to a strong expansion of the consumer funnel and strong adoption of online shopping after Covid in all categories.