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Indian e-retailers are expected to garner more than $ 6.5 billion in sales during the country’s holiday sales season, which will be released this weekend, according to a research note from market researcher Forrester.
The GMV of 6.5 billion dollars represents 34% year-on-year growth. However, this is less an indicator of high consumer confidence than a combination of factors ranging from an accelerated shift from offline shopping to online shopping due to hygiene concerns, spending pent up during the last few months during the quarantine, as well as premises with liquidity problems. allocate budget to bargains and promotions in festive sales.
Approximately 75%, or $ 4.8 billion, of the total sales of 6.5 billion will occur on October 15 and 21, when Amazon and Flipkart will hold their flagship Great Indian Festival Sale and Big Billion Days sales events, respectively, to attract customers.
As the first major online shopping festival in a year that saw the country’s economy battered and the unemployment rate plummet, the country’s e-commerce players are doing their best for a bigger slice of the holiday sales pie hoping to make up for your lost business during a small window of seasonality. Flipkart is working together with local banks and loan companies to bring credit options to its consumers, while Amazon has established 10 new fulfillment centers in preparation for sales.
Demand for consumer electronics, home appliances, smartphones and home furnishings is expected to drive more e-commerce sales, the report noted.
The smartphone will remain the largest category this year, as Indian consumers generally put off updating their phones until the holiday seasons. Although the smartphone will only contribute 34% of total sales compared to 36% last year.
Electronics and home appliances will do well too, especially as homebound Indian consumers struggle to renovate their kitchens.
A Flipkart spokesperson said Quartz in an interview that “kitchen appliances … have witnessed an increase in demand, with a special focus on certain niche segments such as automated or application-controlled products.”
Flipkart will be the leader in the smartphone and fashion categories, the two segments combined enjoying around 50% of total online sales in India, according to the Forrester report.
Earlier, RedSeer, a local Indian consultancy, predicted in its report that the Indian e-commerce sector will raise around USD 7 billion from GMV.
