E-commerce platforms including Flipkart and Amazon India have clocked $2.7 billion in sales and are on track to cross $4.8 billion of gross merchandise value (GMV), in the first week of festive sales this year, according to estimates from management consultancy RedSeer Consulting.
The industry-wide data also includes social commerce and grocery platform, RedSeer said.
In 2020, the four days of the festive week accounted for 63% of the overall festive week sales, as compared to this year where it accounts for roughly 57% of the projected sales.
Smartphones remained top of the order for shoppers this festive season too as it contributed to almost 50% of overall e-commerce GMV.
“With the festive sales lasting longer than last year (9 days compared to 7 days) – we are observing the customer demand being more spread out across the period than being concentrated in the first half of the Festive week. To that tune, we have observed sales of $2.7 billion across e-commerce platforms and we expect another further $2.1 billion over the next 5 days,” said Ujjwal Chaudhry, associate partner at RedSeer.
RedSeer had earlier said that the platforms will clock over $9 billion gross merchandise value (GMV) during the festive season which is a growth of 23 percent from last year.
RedSeer estimates that over 75% customers are planning to buy equivalent of or more than last year across categories like mobiles, large appliances, beauty and fashion.
A survey conducted by the management consultancy said that seller sentiments are equally optimistic this year. Many sellers are planning to offer 10-30% discounts on platforms, with the goal of releasing higher volume sales. Sellers on both e-commerce and social commerce platforms have a favourable perspective of forecasted volume sales and growth during the upcoming festive season, RedSeer stated.
With horizontal platforms rapidly scaling up their warehousing capabilities towards ensuring prompt delivery, the delivery time is expected to reduce by roughly 5 hours this year, compared to 2020.
Further, with easy credit and instant affordability, ‘Buy Now Pay Later’ (BNPL) schemes are likely to account for 10-15% of sales this festive season, said RedSeer.
BNPL accounted for 4-7% of sales last year but is well-poised to command a higher share i.e. 10-15% of sales this year, according to the management consultancy.