Sources reveal that the e-commerce firms have registered 27 percent of growth, with an estimated sales of 40,000 crore INR during the recently introduced festive days sales that lasted for seven days.
Flipkart group, including its subsidiaries Shopsy, Myntra, etc., has attained the top position while Meesho, backed by Softbank, has surpassed Amazon to become the second largest contributor in the e-commerce industry. The conclusion has been drawn by considering the order sales value.
With the ending of the first festive sale, the online retail platforms have experienced a rapid growth of 27 percent clocking a sale of about USD 5.7 billion or Rs. 40,000 crores.
The sources have analyzed the sales in week 1, including the sales conducted by all the retail platforms between September 22 and September 30. The e-commerce applications which did not organize any sales experienced the usual order volume.
The report showed that Flipkart Group led the festive sale with about 62 percent share in terms of the gross merchandise value (GMV), and Amazon occupied the second position with around 26 percent of the GMV.
Flipkart group led the market in terms of order volume with 49 percent share, while Meesho occupied the second spot with 29 percent share.
Amazon spokesperson has condemned the report stating that it was speculative, without any robust and transparent methodology, especially when the reports were not shared with them previously.
The company has further revealed that it has received the highest number of orders in the first twelve days of the sale.
How successful were the festive sales?
The Amazon spokesperson has opened up to the media claiming that they have witnessed the highest-ever start to the event in the first 48 hours, and the sales have expanded by eight times compared to the average business days.
They have received similar kinds of responses in all the categories, and the platform has visualized a substantial increase in visitors compared to what was seen in 2021.
Their seller community received significantly more orders as compared to the last order and was honored by the response from the customers. The company has further extended its gratefulness to the sellers and the brand partners.
The growth in sales was mainly due to the increase in the sales of mobile phones.
Mobile phones as a category contributed to a large portion of GMV share, contributing to 41 percent and can be translated to about 56,000 mobile units sold per hour.
On the other hand, fashion contributed to 20 percent of the GMV, which demonstrated a surge of 48 percent growth according to the data speculated in the previous year.
When compared to the business on usual days, also called BAU, it was found that the mobile phones sector exhibited the highest growth of around seven times while electronics and large appliances showed a growth 5 times more than the usual business days.
Fashion experienced a growth of 3 times followed by two times growth in the other categories.
Flipkart group has maintained its topmost position consistently, while Meesho has become the second largest contributor in the order volume.
Flipkart group and its subsidiaries have reigned an undefeatable position comprising 62 percent of the market share in GMV during the festive sales in week 1.
In terms of order value, Meesho, with its low average order value and higher consumption in Tier-2 cities, emerged as the second largest contributor to festive sales.
The latter has achieved around 21 percent of the market share, while the Flipkart group leads in this segment as well.
The transaction shoppers increased by 24 percent in Y-o-Y sales, with around 65 percent of the shoppers belonging to Tier-2 cities.
An enormous 7.5 to 8 crore shoppers have placed orders across all the e-commerce platforms in the festive sale week 1.
Tier-2 and other cities witnessed the highest increase in the number of online shoppers compared to last year.
In addition, the spend per shopper increased significantly by 3 percent per week during the recently organized Festive sales.
The first week of the Festive sales this year has given the e-commerce industry and manufacturers a reason to cheer, indicating the customer’s willingness to spend on commodities and help to recover the economy.
Edited by Prakriti Arora