16 September 2022, Mumbai:
Flipkart expects to clock growth rates similar to last year’s festive season.
As shoppers move towards value-driven products, Flipkart will focus on expanding its price points, mainly targeting users in smaller cities and towns.
Despite a cautious outlook, the company will continue to invest big over the next month to push new categories, bring more sellers onto the platform, and bolster its supply chain and delivery fleet to meet the increase in demand. Flipkart will be entering a phase of capital conservation. The e-tailer has expanded into several new categories beyond product commerce.
E-commerce sales have picked up over the past few weeks in the run-up to the festive season sale after a relatively sluggish year when growth was muted. Compounding challenges for consumption-led businesses are inflationary pressures and macroeconomic uncertainty, which usually deters purchases, especially of high-value items such as smartphones and other electronics.
So far this year, the e-commerce sector has seen consumption growth moderating across categories, especially in segments considered to be discretionary. E-commerce shipments are expected to grow 20 percent annually in the ongoing financial year. This is a lower rate of annual growth compared to the last two financial years, especially fiscal ’21.
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