Mobile phones and electronic appliances have continued to see strong traction during the ongoing festive sales. According to a report by the research firm, Redseer Consulting, smartphones worth Rs 68 crore were purchased every hour on the e-commerce platforms.
The strong demand for mobile phones and consumer electronics, as per the Redseer analysis, stems from the new launches and affordability factors related to discounts.
The first week of sales on the e-commerce platforms has generated Gross Merchandise Value (GMV) of $4.6 billion (Rs 32,000 crore), a 32 per cent YoY sales growth. The overall number of shoppers grew by 20 per cent compared to the last year, led by Tier-II buyers who constituted 63 per cent of the base.
The GMV per shopper (which is also indicative of the spending pattern) has significantly grown by 1.4 x, the Redseer report stated. The initial trends indicated that Flipkart has beaten Amazon when it came to market share, having clocked 64 per cent of sales.
"The festive season this year has been one that is driven by a larger theme of affordability. Constructs were built carefully by the platforms through BNPL schemes and bank tie-ups as well as seller driven discounts to serve up the most competitive prices of top leading brands and serve the aspiring customer," Ujjwal Chaudhry, Associate Partner at RedSeer Consulting, said.
Although mobile phones and gadgets maintained their consolidation across product categories, the fashion segment has seen a comeback this year after not being able to generate reasonable sales last year.
Fashion also saw demand as customers wanted to refresh their wardrobe and the reach expanded as newer affordable platforms reached Tier II + customers. However, the demand for other categories like home furnishings, home décor and furnishings have been subdued during the festive season this year, the Redseer report said.
India's tier-II towns have led the growth in online shopping sales during this festive season, with brands also bullish on these markets to sell online.
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