Ecommerce: Why Diwali Sale Online May Be One of the Biggest This Year – Latest News
The rise in e-commerce will be driven in large part by mega-sales events hosted by Amazon and Walmart-owned Flipkart. E-commerce giants are expected to rack up sales of about $ 4.8 billion during the week of October 15-21, according to the report.
In an earlier forecast, e-commerce industry tracker RedSeer Consulting had said that online sales could nearly double to $ 7 billion during this year’s holiday season.
“Don’t interpret this 34% growth (in e-commerce sales) as a return on retail spending,” said Satish Meena, a senior forecast analyst at Forrester Research, who estimates that the number of online shoppers this year will increase to about 60 million more than last year. 45 million e-shoppers.
A new report from RedSeer Consulting also indicated that more consumers are choosing to shop online this holiday season as they look to stock up on more groceries, doubling their share to 6%. Other favorite purchases will be in categories like home and furniture, as well as appliances, which are expected to account for about 14% of gross sales compared to 12% last year.
The scramble for smartphones and consumer electronics, long the mainstay of online retail in India, has slowed this year, according to Forrester’s findings. Smartphones are expected to drive 34% of gross sales during this holiday period, compared to 36% last year, while consumer electronics will contribute around 17%, according to the report. However, the biggest decrease will be in the previously popular fashion segment, which is expected to account for just 16% of total sales compared to 24% last year.
“There is a cut in spending, but as this is the holiday period and there is more visibility around the pandemic, some salaries have been restored, these are coming together to boost demand,” Meena said.
“But it is clear that instead of going to (physical) stores, people buy online,” he said.
In its survey, RedSeer said it saw 91% of respondents say they would buy online, up from 87% last year. The biggest increase comes from metropolitan areas, where 90% of those surveyed said they would shop online this year compared to 80% last year.
This clear change in consumer preference for online purchases is causing brands to modify their strategies.
Shital Mehta, CEO of Max Fashion India and Managing Director of Lifestyle International, told ET that the company has strategically expanded its reach in line with the launch on Myntra and Flipkart. “With these partnerships we can expand our reach using e-commerce supply chains and reach a broader set of customers without affordable fashion merchandise,” he said.
Max had previously only partnered with Amazon in India.
“Brands have taken e-commerce seriously after COVID-19 and have aggressive online sales targets on holidays and beyond,” said Ujjwal Chaudhry of RedSeer Consulting, who estimates that the online channel for brands could see expansion. than five times in the holiday period compared to pre-COVID levels. “Private labels (owned by e-commerce companies) are expected to account for 10% of gross sales,” he said.
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