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This article is more than 1 year old.

Online platforms could clock $7 billion in sales during festive month: Redseer

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Online festive sale GMV (during main sale events) expected to grow 50 percent y-o-y over CY19 to reach $4 billion.

Online platforms could clock $7 billion in sales during festive month: Redseer
The main online festive sale events during Diwali this year, which are largely dominated by Flipkart’s Big Billion Day sale and Amazon’s Great Indian Festival sale, are likely to touch $4 billion in gross merchandise value, a 50 percent jump from last year. Total festive month sales are expected to touch $7 billion, up from $3.8 billion last year, according to consulting firm Redseer.
The number of shoppers is also expected to jump sharply to around 45-50 million from 28 million during sales in 2019.
The overall 2020 gross merchandise value (GMV) is expected to be at $38 billion, up from $27 billion in 2019, while the number of online shoppers is expected to touch 160 million, up from 135 million, according to Redseer’s latest report.
There is also likely to be a change in the share of categories such as phones and fashion. The share of mobile phones in the overall GMV could be around 45 percent, down from 48 percent during the festive sales of 2019, and from 53 percent in 2018 and 2017. The share of fashion is expected to grow to up to 20 percent this year from 17 percent in 2019 and 14 percent the year before.
Redseer has highlighted five new trends expected to play out during the festive sales this year in the light of the pandemic.
  • The COVID driven online adoption of customers outside of metros will lead to an acceleration of this theme. However, Redseer says this could reach a tipping point.
  • Video-based and WhatsApp-based shopping could be a new addition to the festive landscape this year
  • The brand mix is likely to look different this year, especially in electronics and mobile, largely driven by the nationalist sentiments coupled with the government’s 'Atmanirbhar' policy
  • With the organized retail sector taking a massive hit from the pandemic, some of the share will go to online platforms.
  • The rise of Jio is likely to impact the festive sales momentum. However, Redseer says that the impact is likely to be moderate given their limited exposure to electronics.
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