Walmart’s Flipkart dominates India’s e-commerce festive sales as overall GMV grows

Photo: Bloomberg

The e-commerce sector in the festive sale period between mid-October to November clocked $8.3 billion in gross merchandise value (GMV), up around 65% from the previous year. Flipkart Group including Myntra emerged as the leader, said management consulting firm Redseer.

Flipkart Group comprised 66% of the overall GMV clocked by e-commerce firms in the festive season. Last year, GMV clocked by e-commerce firms stood at $5 billion during the festive month.

This year’s festive sales also saw 88% customer growth from last year, as close to 40 million shoppers coming from Tier 2 and beyond cities bought on e-commerce platforms.

Overall, 88 million shoppers purchased goods on e-commerce this festive season, with 55% coming from Tier 2 towns, and 45% from metros and Tier 1 cities. Last year, close to 47 million shoppers bought from e-commerce during festive season sales.

Factors like presale awareness, pent up demand by customers, wide selection across categories, disruption of offline stores along with multiple credit and affordability constructs helped major e-commerce players to drive growth this festive season.

“One clear lesson from this festive season is that e-commerce has become more mainstream than ever. And it has proven that with the right assortment at the right prices which is delivered quickly in the safety of customer’s homes – the value proposition of e-commerce is very powerful. Thus, it is imperative for brands and sellers to shift their focus to online quickly and enable a seamless online experience for the customer in order to thrive in a post COVID world,” said Mrigank Gutgutia, director, e-commerce, RedSeer Consulting.

In the category mix, smartphones continued to dominate across all the products, with an increasing share of users from Tier 2 cities. With covid forcing individuals to work-from-home, even electronics and large appliances saw a jump, clocking 29% of the overall GMV, during this festive sale.

On the other hand, fashion took a minor hit during this festive sale as covid placed restrictions on ‘stepping out’ behaviour of consumers. GMV per customer also dropped to 6,600 from 7,450 in last festive season, Redseer added.

Earlier, Mint had reported that a total of 52 million shoppers flocked on e-commerce websites, in the first week of 2020 festive sales, with 57%, or 31 million customers coming from smaller cities and towns.

The article was first published on livemint.com.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.