India’s online festive sales saw a significant surge in the first week, largely driven by demand for mobile phones and electronics, which might not be exclusively linked to the iPhone effect.
E-Commerce͏͏ Giants͏͏ Report͏͏ Impressive͏͏ Growth:
A͏͏ report͏͏ by͏͏ Datum͏͏ Intelligence͏͏ reveals͏͏ that͏͏ e-commerce͏͏ giants͏͏ Amazon͏͏ and͏͏ Flipkart͏͏ recorded͏͏ sales͏͏ of͏͏ over͏͏ INR͏͏ 54,500͏͏ crore͏͏ from͏͏ September͏͏ 26͏͏ to͏͏ October͏͏ 2,͏͏ representing͏͏ a͏͏ 26%͏͏ year-on-year͏͏ growth.͏͏ Mobile͏͏ phones͏͏ drove͏͏ nearly͏͏ 60%͏͏ of͏͏ the͏͏ spending,͏͏ accounting͏͏ for͏͏ 38%,͏͏ followed͏͏ by͏͏ electronics͏͏ and͏͏ consumer͏͏ durables͏͏ at͏͏ 21%.
“Sales͏͏ were͏͏ dominated͏͏ by͏͏ the͏͏ iPhone͏͏ 15͏͏ and͏͏ previous͏͏ generations,͏͏ while͏͏ Samsung’s͏͏ Galaxy͏͏ S23͏͏ FE͏͏ performed͏͏ exceptionally͏͏ well͏͏ on͏͏ Flipkart,”͏͏ stated͏͏ analyst͏͏ Shubham͏͏ Singh͏͏ from͏͏ Counterpoint͏͏ Research.
Premium͏͏ mobile͏͏ phones,͏͏ particularly͏͏ those͏͏ priced͏͏ above͏͏ INR͏͏ 30,000,͏͏ gained͏͏ traction͏͏ due͏͏ to͏͏ attractive͏͏ discounts.͏͏ Furthermore,͏͏ the͏͏ introduction͏͏ of͏͏ new͏͏ iPhone͏͏ models͏͏ led͏͏ to͏͏ price͏͏ reductions͏͏ on͏͏ older͏͏ versions,͏͏ boosting͏͏ their͏͏ sales͏͏ performance.
Strong͏͏ Demand͏͏ for͏͏ Consumer͏͏ Durables:
Consumer͏͏ durables͏͏ like͏͏ double-door͏͏ refrigerators͏͏ and͏͏ smart͏͏ TVs͏͏ experienced͏͏ strong͏͏ demand.͏͏ More͏͏ than͏͏ half͏͏ of͏͏ the͏͏ buyers͏͏ chose͏͏ EMI͏͏ payments,͏͏ with͏͏ a͏͏ significant͏͏ number͏͏ of͏͏ purchasers͏͏ coming͏͏ from͏͏ smaller͏͏ towns͏͏ and͏͏ cities.
Tier-2͏͏ and͏͏ Tier-3͏͏ Cities͏͏ Drive͏͏ Sales:
Amazon͏͏ stated͏͏ that͏͏ nearly͏͏ 70%͏͏ of͏͏ premium͏͏ smartphone͏͏ sales͏͏ originated͏͏ from͏͏ tier-2͏͏ and͏͏ tier-3͏͏ cities,͏͏ which͏͏ also͏͏ represented͏͏ almost͏͏ 80%͏͏ of͏͏ all͏͏ television͏͏ orders.
Amazon͏͏ reported͏͏ that͏͏ the͏͏ Amazon͏͏ Great͏͏ Indian͏͏ Festival͏͏ 2024͏͏ launched͏͏ with͏͏ record-breaking͏͏ numbers͏͏ in͏͏ the͏͏ first͏͏ 48͏͏ hours.͏͏ The͏͏ event͏͏ recorded͏͏ nearly͏͏ 11͏͏ crore͏͏ customer͏͏ visits,͏͏ marking͏͏ its͏͏ strongest͏͏ opening͏͏ to͏͏ date.͏͏ Notably,͏͏ 80%͏͏ of͏͏ these͏͏ visits͏͏ originated͏͏ from͏͏ tier-2͏͏ cities͏͏ and͏͏ smaller͏͏ towns,͏͏ underscoring͏͏ the͏͏ increasing͏͏ demand͏͏ from͏͏ non-metropolitan͏͏ regions.
Continue͏͏ Exploring:͏͏ Amazon͏͏ records͏͏ 11͏͏ Cr͏͏ customer͏͏ visits͏͏ in͏͏ the͏͏ first͏͏ 48͏͏ hours͏͏ of͏͏ Great͏͏ Indian͏͏ Festival͏͏ sale
More͏͏ than͏͏ 8,000͏͏ sellers͏͏ surpassed͏͏ INR͏͏ 1͏͏ lakh͏͏ in͏͏ sales͏͏ during͏͏ this͏͏ period,͏͏ accompanied͏͏ by͏͏ a͏͏ notable͏͏ increase͏͏ in͏͏ Prime͏͏ membership͏͏ purchases.͏͏ Prime͏͏ Early͏͏ Access͏͏ customers͏͏ made͏͏ eight͏͏ times͏͏ more͏͏ purchases͏͏ in͏͏ the͏͏ first͏͏ 24͏͏ hours͏͏ compared͏͏ to͏͏ an͏͏ average͏͏ day,͏͏ indicating͏͏ strong͏͏ interest͏͏ across͏͏ various͏͏ categories.
Smartphone͏͏ sales͏͏ were͏͏ notably͏͏ strong,͏͏ with͏͏ over͏͏ 75%͏͏ of͏͏ total͏͏ sales͏͏ originating͏͏ from͏͏ tier-2͏͏ and͏͏ tier-3͏͏ towns.͏͏ Interestingly,͏͏ almost͏͏ 70%͏͏ of͏͏ premium͏͏ smartphone͏͏ purchases,͏͏ priced͏͏ above͏͏ INR͏͏ 30,000,͏͏ also͏͏ came͏͏ from͏͏ these͏͏ smaller͏͏ cities.
Continued͏͏ Growth͏͏ Projected͏͏ for͏͏ Festive Season:
Throughout͏͏ the͏͏ festive͏͏ season͏͏ leading͏͏ up͏͏ to͏͏ Diwali,͏͏ online͏͏ sales͏͏ are͏͏ projected͏͏ to͏͏ increase͏͏ by͏͏ 23%,͏͏ approaching͏͏ INR͏͏ 100,000͏͏ crore.͏͏ In͏͏ comparison,͏͏ last͏͏ year͏͏ saw͏͏ a͏͏ sales͏͏ growth͏͏ of͏͏ 16%,͏͏ totaling͏͏ INR͏͏ 81,000͏͏ crore.
Continue͏͏ Exploring:͏͏ E-commerce͏͏ sales͏͏ in͏͏ India͏͏ expected͏͏ to͏͏ hit͏͏ $12͏͏ Bn͏͏ this͏͏ festive season,͏͏ up͏͏ 23%͏͏ from͏͏ last͏͏ year
Shift͏͏ Towards͏͏ Premium͏͏ Products:
Panasonic͏͏ recorded͏͏ double-digit͏͏ growth͏͏ in͏͏ online͏͏ sales,͏͏ reflecting͏͏ a͏͏ significant͏͏ consumer͏͏ shift͏͏ towards͏͏ premium͏͏ products.͏͏ Sushil͏͏ Grover,͏͏ business͏͏ chief͏͏ at͏͏ Panasonic͏͏ Life͏͏ Solutions͏͏ India,͏͏ stated,͏͏ “We’re͏͏ observing͏͏ consumers͏͏ moving͏͏ towards͏͏ premium͏͏ segments.͏͏ There’s͏͏ considerable͏͏ interest͏͏ in͏͏ 5-star͏͏ ACs,͏͏ smart͏͏ washing͏͏ machines,͏͏ and͏͏ microwaves͏͏ featuring͏͏ convection͏͏ and͏͏ insta͏͏ cook͏͏ options.”͏͏ Similarly,͏͏ Godrej͏͏ Appliances͏͏ experienced͏͏ robust͏͏ online͏͏ sales͏͏ for͏͏ premium͏͏ items͏͏ such͏͏ as͏͏ frost-free͏͏ refrigerators͏͏ and͏͏ air͏͏ conditioners.
