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E-commerce sales to surge 20% to Rs 90,000 crore this festive season: Redseer 

E-commerce sales to surge 20% to Rs 90,000 crore this festive season: Redseer 

It says this festive season could see increasing contributions from higher margin categories like beauty and personal care, home, and fashion 

Binu Paul
Binu Paul
  • Updated Sep 15, 2023 4:19 PM IST
E-commerce sales to surge 20% to Rs 90,000 crore this festive season: Redseer Festive sale is expected to contribute approximately 17 per cent of annual GMV of CY23
SUMMARY
  • Festive sale is expected to contribute approximately 17 per cent of annual GMV of CY23 
  • During the January-July 2023 period, GMV grew about 10 per cent compared to the same period last year 
  • Annual GMG of India’s e-tail sector is expected to hit Rs 5,25,000 crore in 2023

After a relative lull in consumer demand over the past three years, online festive sale events this year are predicted to reinvigorate consumption, with e-commerce gross merchandise volume (GMV) expected to grow by 18-20 per cent, reaching an estimated Rs 90,000 crore, as per a recent report by Redseer Strategy Consultants. 

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The festive sale season is expected to contribute approximately 17 per cent of annual GMV of CY23. The full-year GMG of India’s e-tailing sector is expected to hit Rs 5,25,000 crores in 2023, marking a 19.3 per cent increase from 2022. About 140 million shoppers are anticipated to transact online at least once during the season. 

E-commerce GMV during festive season has grown from $35 billion in 2019 to $76 billion in 2022. 

While the official dates for the flagship annual festive sale events in the e-commerce sector have yet to be disclosed, it is anticipated that Flipkart’s ‘Big Billion Days’ and Amazon’s ‘Great Indian Festival’ sales will kick off during the initial week of October. 

While e-commerce sales experienced substantial growth in the aftermath of the Covid-19 pandemic, the sector has encountered a period of subdued growth over the past two quarters. During the January-July 2023 period, GMV grew about 10 per cent compared to the same period in the previous year. However, as the broader economy returns to pre-pandemic levels of activity, the upcoming festive season is anticipated to stimulate increased demand for online consumption, the report said. 

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As the industry matures, this year’s festive season will see increasing contributions from higher margin categories like beauty and personal Care (BPC), home and general merchandise, and fashion, the report predicts. 

“Over the last several quarters, we are seeing enhanced GMV contributions from categories beyond electronics. While electronics sell a lot in the festive period, looking at the bigger picture and comparing the festive sale periods over the last several years, there is a clear trend of category diversification. This is good for the ecosystem as it shows consumers’ willingness to purchase multiple categories online and more brands coming to cater to their needs,” said Mrigank Gutgutia, Partner at Redseer Strategy Consultants.  

Published on: Sep 15, 2023 4:19 PM IST
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