10 September 2022, Mumbai:
E-commerce retailers led by Amazon and Flipkart are expected to garner sales this festive season that is more than double the pre-pandemic figure in 2019.
Covid has speeded up the shift to e-commerce, with an increasing number of consumers shopping online at a higher frequency than last year. This year’s numbers are projected to increase by 28 percent from 2021. The festive month starts from the first sales day and lasts roughly till the Diwali week and includes non-sales days in the interim.
However, the festive season’s share of the online retail gross merchandise value (GMV) is dropping, due to the increasing frequency of transactions fuelled by sale events throughout the year. GMV is the total value of merchandise sold over a certain time frame. The spurt in sales is expected to further push the overall online retail GMV up 30 percent from 2021.
This has been driven by accelerated digital adoption and increasing penetration in Tier II cities and beyond. The launch of new e-commerce models such as live and video commerce will further drive the growth of online shoppers, especially in TierII cities and beyond.
Category-wise this festive season, the fashion category is expected to see robust growth driven by an increasing shopper base from Tier II cities. The mobile and electronics category is expected to remain strong during the festive sales driven by better deals and new launches.
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