Online growth slows amid pandemic fatigue and economic factors: Unicom
12 May 2023, Mumbai
E-commerce growth in India is experiencing a slower pace than expected, with the pandemic-induced surge in online shopping waning. Data from Unicommerce, an e-commerce-focused warehouse solutions provider, reveals a 16% year-on-year volume growth in the March quarter, compared to an estimated 35% growth for the fiscal year 2023.
Industry executives attribute the slowdown to factors such as a consumption slowdown, decreased discounts from new-age brands amid a funding winter, and a decrease in disposable income.
Smartphones, a major driver of sales on platforms, have witnessed declining volumes for three consecutive quarters. Furthermore, the beauty and personal care category has also seen a downturn, expanding only 11% in the March quarter compared to a significant growth of 143% in the previous fiscal year.
As a result, companies are reassessing e-commerce as just another sales channel, emphasizing the need for a balance between online and offline channels.
