Source : The Times of India, Last updated : 9 Oct 2019,4:00 am

E-tailers generate $3 billion during six-day festive sales

E-tailers generate $3 billion during six-day festive sales
BENGALURU: India’s largest online retailers Flipkart and Amazon India clocked an increase of 30% in their gross merchandise value (GMV) to $3 billion during the six-day festive sales. This was lower than the expected target of $3.7 billion pegged by management consultancy RedSeer, as focus on value buys and slowing growth in urban markets impacted the numbers.

A significant slowdown in growth is underlined by these numbers as the total sales had increased by 77% to $2.3 billion during the five-day sale period in 2018 as compared to 2017 (see graphic).


2019-10-08


While the sales saw an increase in demand from tier-2 cities and beyond, customers in metros stayed away, particularly in large appliances.

“There is a shadow of an economic slowdown, which has pulled down the demand,” said RedSeer CEO Anil Kumar. “Earlier, growth was coming from customers in metros buying high-value items across categories like large appliances and smartphones. Now growth is coming from small towns where first-time buyers are making value purchases in categories like smartphones and fashion.”

According to him, smartphones continued to account for 55% of the sales, even as there was an expectation that there will be a fall in its share of the total GMV.


RedSeer also said that Flipkart, where Walmart owns a 77% stake, has emerged as the winner with a 63% market share during the sales, while Amazon India stood at 28-30%. Flipkart had last week claimed a 73% market share citing internal data.


Amazon India, which last week quoted Nielsen data to show it had led the market with a 45% share of gross sales, contested the RedSeer numbers. “We cannot comment on speculative reports that lack robust and credible methodology,” said an Amazon India spokeswoman.


But both Flipkart and Amazon India have together increased their market share from 82% last year to 90% as other horizontal rivals like Paytm Mall, Snapdeal and ShopClues did not participate with aggressive discounts. Both Flipkart and Amazon India have also announced their second wave of sales next week as well in the run-up to Diwali.


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