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NEW DELHI: Consumers seem to be spending a lot of money on festive purchases e-commerce platforms It is estimated to have generated Rs 29,000 crore in sales in the first four days of the festive sale period, according to a report released by Redseer Strategy Consultants on Friday. This translates into a 16% year-over-year sales increase compared to the same period last year. Important e-tailers Flipkart and Amazon launched their annual festive sale on October 8 this year. The rise in demand was helped by several deals offered by platforms for high ASP (average selling price) items and easy financing options like no-cost EMIs, analysts at the consultancy firm said. Moreover, features such as pre-book and price lock introduced by platforms that allowed consumers to lock in the prices of high-end products such as electronics before the start of sales, enabled e-tailers to gauge customer demand and determine a better strategy.
The first day of the sale is estimated to have seen seven times sales growth over the regular period, while daily sales over the four-day period averaged six times normal, Redseer said. On Amazon, for example, 9.5 crore customers visited the platform in the first 48 hours since the sale event was launched. Users are betting big on smartphones, with 75% of purchases made by customers from the second, three cities and beyond, the company said earlier this week. Initial indications from Flipkart suggested that consumers are spending money on mobile phones, appliances, clothing and electronics, among others. Saurabh Srivastava, vice president at Amazon India, had told TOI that he expects this year’s festive sale to be bigger than the previous edition. “Many customers are looking forward to the shopping festival that Amazon celebrates to do their shopping,” Srivastava had said.
Categories such as fashion, beauty, personal care and home are likely to gain more attention during the remaining days of the festive sale, Redseer said. While Flipkart’s Big Billion Days ends on October 15, Amazon’s Great India Festival is expected to be a month-long event. As many as 140 million shoppers are expected to make at least one online purchase during the holiday season. “Premiumisation is clearly a theme this festive season as consumer spending in the high ticket categories has performed well. Further, the steady growth in overall sales and high growth across ASP categories reinforces the belief in the strength of the Indian consumption story,” said Mrigank Gutgutia, partner at Redseer.
E-commerce companies typically organize festive sales in phases over the period from Navratri to Diwali, with the first phase of sales (launched closer to the start of Navratri) accounting for the bulk of the demand. Throughout the festive period, Redseer had expected e-tailers to collectively generate sales worth Rs 90,000 crore.
The first day of the sale is estimated to have seen seven times sales growth over the regular period, while daily sales over the four-day period averaged six times normal, Redseer said. On Amazon, for example, 9.5 crore customers visited the platform in the first 48 hours since the sale event was launched. Users are betting big on smartphones, with 75% of purchases made by customers from the second, three cities and beyond, the company said earlier this week. Initial indications from Flipkart suggested that consumers are spending money on mobile phones, appliances, clothing and electronics, among others. Saurabh Srivastava, vice president at Amazon India, had told TOI that he expects this year’s festive sale to be bigger than the previous edition. “Many customers are looking forward to the shopping festival that Amazon celebrates to do their shopping,” Srivastava had said.
Categories such as fashion, beauty, personal care and home are likely to gain more attention during the remaining days of the festive sale, Redseer said. While Flipkart’s Big Billion Days ends on October 15, Amazon’s Great India Festival is expected to be a month-long event. As many as 140 million shoppers are expected to make at least one online purchase during the holiday season. “Premiumisation is clearly a theme this festive season as consumer spending in the high ticket categories has performed well. Further, the steady growth in overall sales and high growth across ASP categories reinforces the belief in the strength of the Indian consumption story,” said Mrigank Gutgutia, partner at Redseer.
E-commerce companies typically organize festive sales in phases over the period from Navratri to Diwali, with the first phase of sales (launched closer to the start of Navratri) accounting for the bulk of the demand. Throughout the festive period, Redseer had expected e-tailers to collectively generate sales worth Rs 90,000 crore.