India’s online festive sales for a month that is from mid-October-November clocked $8.3 billion, a 65% y-o-y growth, and Flipkart Group played a dominant role with a share of 66% of the total sale, said Redseer Consulting on Friday.
Mrigank Gutgutia, Director at Consulting firm RedSeer, said, “The overall growth story has been very bullish this festive season. We had predicted $7 billion of sales but the actual figures surpassed our expectations, showing how comfortable consumers have become with shopping online even in this pandemic hit year”.
The festive season for this year saw 88% customer growth from last year which was driven by about 40 million shoppers from Tier 2+ cities. Further, mobiles continued to dominate across all products. With a further increasing share of users from Tier 2+ cities, GMV (gross merchandise value) per customer dropped to ₹6,600 from ₹7,450 in the last festive season.
“According to our estimates, Flipkart Group emerged as the leader during the whole festive month with 66% share of the total sale,” he said.
Factors like high pre-sale awareness and anticipation driven by an impactful campaign, wide selection across the categories, seamless supply chain planning enabled minimal product stock-outs along with multiple affordability constructs helped Flipkart and Amazon to drive growth this festive season, as per Redseer.
“One clear lesson from this festive season is that eCommerce 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 eCommerce is very powerful,” added Mr. Gutgutia.