E-commerce companies and online sellers are͏͏ projected͏͏ to͏͏ deliver͏͏ merchandise͏͏ valued͏͏ at͏͏ $12͏͏ billion͏͏ to͏͏ consumers͏͏ in͏͏ India͏͏ this͏͏ festive͏͏ season,͏͏ marking͏͏ a͏͏ 23%͏͏ increase͏͏ from͏͏ approximately͏͏ $9.7͏͏ billion͏͏ last͏͏ year,͏͏ according͏͏ to͏͏ market͏͏ research͏͏ firm͏͏ Datum͏͏ Intelligence.
Quick͏͏ Commerce͏͏ Gains͏͏ Traction:
According͏͏ to͏͏ the͏͏ report,͏͏ quick͏͏ commerce͏͏ is͏͏ expected͏͏ to͏͏ represent͏͏ $1͏͏ billion͏͏ of͏͏ these͏͏ e-commerce͏͏ sales͏͏ in͏͏ terms͏͏ of͏͏ gross͏͏ merchandise͏͏ value͏͏ (GMV).͏͏ GMV͏͏ refers͏͏ to͏͏ the͏͏ total͏͏ value͏͏ of͏͏ goods͏͏ sold͏͏ on͏͏ e-commerce͏͏ platforms,͏͏ excluding͏͏ discounts͏͏ and͏͏ returns.
Diwali͏͏ Sales:͏͏ Key͏͏ Period͏͏ for͏͏ E-commerce Growth
E-commerce͏͏ platforms,͏͏ their͏͏ sellers,͏͏ and͏͏ major͏͏ brands͏͏ are͏͏ gearing͏͏ up͏͏ for͏͏ strong͏͏ sales͏͏ during͏͏ the͏͏ festive͏͏ season.͏͏ This͏͏ two-month͏͏ period,͏͏ culminating͏͏ in͏͏ Diwali,͏͏ usually͏͏ accounts͏͏ for͏͏ a͏͏ substantial͏͏ share͏͏ of͏͏ revenue͏͏ for͏͏ e-commerce͏͏ companies͏͏ and͏͏ other͏͏ retailers.
Continue͏͏ Exploring:͏͏ E-commerce and͏͏ logistics͏͏ firms͏͏ target͏͏ smaller͏͏ cities͏͏ for͏͏ expansion͏͏ this͏͏ festive͏͏ season
Major͏͏ Players͏͏ Gear͏͏ Up:͏͏ New͏͏ Categories͏͏ and͏͏ Inventory
This͏͏ year,͏͏ quick-commerce͏͏ platforms͏͏ such͏͏ as͏͏ Zomato-owned͏͏ Blinkit,͏͏ Swiggy͏͏ Instamart,͏͏ Mumbai-based͏͏ Zepto,͏͏ and͏͏ BigBasket’s͏͏ BB͏͏ Now͏͏ are͏͏ gearing͏͏ up͏͏ for͏͏ a͏͏ dynamic͏͏ Diwali,͏͏ aiming͏͏ to͏͏ secure͏͏ a͏͏ larger͏͏ market͏͏ share.
“Quick͏͏ commerce͏͏ is͏͏ the͏͏ standout͏͏ this͏͏ year.͏͏ While͏͏ there͏͏ will͏͏ still͏͏ be͏͏ significant͏͏ non-grocery͏͏ and͏͏ non-BPC͏͏ (beauty͏͏ and͏͏ personal͏͏ care)͏͏ purchases,͏͏ quick͏͏ commerce͏͏ will͏͏ be͏͏ the͏͏ dominant͏͏ player͏͏ in͏͏ this͏͏ category,”͏͏ said͏͏ Satish͏͏ Meena,͏͏ an͏͏ advisor͏͏ at͏͏ Datum͏͏ Intelligence.͏͏ “This͏͏ trend͏͏ is͏͏ not͏͏ only͏͏ impacting͏͏ sales͏͏ from͏͏ modern͏͏ trade͏͏ marketplaces͏͏ but͏͏ will͏͏ also͏͏ affect͏͏ kirana͏͏ store͏͏ revenues.”
Zepto͏͏ announced͏͏ that͏͏ its͏͏ sellers͏͏ have͏͏ increased͏͏ inventory͏͏ with͏͏ new͏͏ categories,͏͏ including͏͏ electrical͏͏ appliances,͏͏ beauty͏͏ products,͏͏ and͏͏ gifting͏͏ options͏͏ like͏͏ plants͏͏ for͏͏ the͏͏ festive͏͏ season,͏͏ in͏͏ addition͏͏ to͏͏ its͏͏ core͏͏ categories͏͏ of͏͏ kitchen͏͏ appliances,͏͏ personal͏͏ care,͏͏ and͏͏ gift͏͏ packs.͏͏ “We’re͏͏ collaborating͏͏ closely͏͏ with͏͏ brands͏͏ to͏͏ create͏͏ festival-specific͏͏ offers,”͏͏ a͏͏ Zepto͏͏ spokesperson͏͏ stated.
Grocery͏͏ and͏͏ beauty͏͏ and͏͏ personal͏͏ care͏͏ are͏͏ poised͏͏ to͏͏ drive͏͏ growth,͏͏ with͏͏ quick͏͏ commerce͏͏ projected͏͏ to͏͏ account͏͏ for͏͏ 51%͏͏ of͏͏ online͏͏ grocery͏͏ sales,͏͏ up͏͏ from͏͏ 37.6%͏͏ last͏͏ year,͏͏ according͏͏ to͏͏ the͏͏ report.
For͏͏ e-commerce͏͏ platforms,͏͏ sales͏͏ of͏͏ categories͏͏ such͏͏ as͏͏ smartphones͏͏ and͏͏ large͏͏ appliances͏͏ during͏͏ the͏͏ festive͏͏ season͏͏ can͏͏ account͏͏ for͏͏ up͏͏ to͏͏ a͏͏ third͏͏ of͏͏ their͏͏ annual͏͏ revenue.
Continue͏͏ Exploring:͏͏ Non-metro͏͏ cities͏͏ lead͏͏ e-commerce growth͏͏ in͏͏ India,͏͏ driving͏͏ 60%͏͏ of͏͏ orders:͏͏ Report
According͏͏ to͏͏ the͏͏ Datum͏͏ Intelligence͏͏ report,͏͏ mobile͏͏ and͏͏ fashion͏͏ categories͏͏ are͏͏ expected͏͏ to͏͏ dominate͏͏ festive͏͏ spending,͏͏ comprising͏͏ 50%͏͏ of͏͏ total͏͏ sales.
“The͏͏ premiumisation͏͏ trend͏͏ that͏͏ began͏͏ last͏͏ year͏͏ will͏͏ persist͏͏ this͏͏ year͏͏ as͏͏ well.͏͏ Last͏͏ year,͏͏ we͏͏ observed͏͏ premiumisation͏͏ particularly͏͏ in͏͏ the͏͏ smartphone͏͏ category,”͏͏ said͏͏ Meena.
Festive͏͏ Sales͏͏ Launch:͏͏ Major͏͏ Events͏͏ Kicking͏͏ Off:
E-commerce͏͏ giants͏͏ Amazon͏͏ India͏͏ and͏͏ Walmart-owned͏͏ Flipkart͏͏ are͏͏ set͏͏ to͏͏ launch͏͏ their͏͏ annual͏͏ festive͏͏ season͏͏ sale͏͏ on͏͏ September͏͏ 27,͏͏ lasting͏͏ for͏͏ approximately͏͏ a͏͏ month.͏͏ SoftBank-backed͏͏ e-commerce͏͏ firm͏͏ Meesho͏͏ will͏͏ also͏͏ start͏͏ its͏͏ Meesho͏͏ Mega͏͏ Blockbuster͏͏ Sale͏͏ on͏͏ the͏͏ same͏͏ day.͏͏ Meanwhile,͏͏ Flipkart-owned͏͏ fashion͏͏ platform͏͏ Myntra͏͏ will͏͏ kick͏͏ off͏͏ its͏͏ Big͏͏ Fashion͏͏ Festival͏͏ a͏͏ day͏͏ earlier.
“For͏͏ the͏͏ upcoming͏͏ festive͏͏ season,͏͏ Flipkart͏͏ customers͏͏ can͏͏ look͏͏ forward͏͏ to͏͏ improved͏͏ on-app͏͏ experiences,͏͏ including͏͏ video͏͏ commerce,͏͏ immersive͏͏ technologies͏͏ like͏͏ AR͏͏ and͏͏ 3D͏͏ try-ons,͏͏ and͏͏ a͏͏ broader͏͏ product͏͏ selection͏͏ across͏͏ various͏͏ categories,”͏͏ said͏͏ Harsh͏͏ Chaudhary,͏͏ head͏͏ of͏͏ growth͏͏ at͏͏ the͏͏ e-commerce͏͏ firm.
The͏͏ Datum͏͏ Intelligence͏͏ report͏͏ indicates͏͏ that͏͏ shoppers͏͏ in͏͏ small͏͏ cities͏͏ are͏͏ starting͏͏ their͏͏ purchases͏͏ earlier͏͏ to͏͏ guarantee͏͏ timely͏͏ delivery͏͏ of͏͏ their͏͏ products.͏͏ Typically,͏͏ during͏͏ the͏͏ festive͏͏ rush,͏͏ delivery͏͏ estimates͏͏ in͏͏ non-metro͏͏ markets͏͏ are͏͏ longer͏͏ than͏͏ usual.
In͏͏ preparation͏͏ for͏͏ this͏͏ year’s͏͏ festive͏͏ season,͏͏ Flipkart͏͏ has͏͏ opened͏͏ 11͏͏ fulfilment͏͏ centres͏͏ and͏͏ created͏͏ over͏͏ 100,000͏͏ new͏͏ temporary͏͏ jobs͏͏ across͏͏ more͏͏ than͏͏ 40͏͏ regions.͏͏ The͏͏ company͏͏ is͏͏ also͏͏ enhancing͏͏ same-day͏͏ and͏͏ next-day͏͏ delivery͏͏ services͏͏ within͏͏ its͏͏ expanding͏͏ network͏͏ of͏͏ cities.
Amazon͏͏ has͏͏ opened͏͏ three͏͏ new͏͏ fulfilment͏͏ centres͏͏ in͏͏ the͏͏ National͏͏ Capital͏͏ Region,͏͏ Guwahati,͏͏ and͏͏ Patna͏͏ to͏͏ improve͏͏ delivery͏͏ speeds,͏͏ support͏͏ over͏͏ 250,000͏͏ sellers,͏͏ and͏͏ create͏͏ job͏͏ opportunities.͏͏ Amazon͏͏ India͏͏ did͏͏ not͏͏ provide͏͏ a͏͏ comment.
“Quick͏͏ commerce͏͏ is͏͏ an͏͏ intriguing͏͏ space.͏͏ It͏͏ certainly͏͏ serves͏͏ a͏͏ purpose͏͏ for͏͏ specific͏͏ customer͏͏ segments,͏͏ and͏͏ there’s͏͏ no͏͏ denying͏͏ that.͏͏ However,͏͏ Amazon’s͏͏ model͏͏ focuses͏͏ on͏͏ delivering͏͏ to͏͏ 100%͏͏ of͏͏ serviceable͏͏ pin͏͏ codes͏͏ in͏͏ India,͏͏ particularly͏͏ as͏͏ we͏͏ approach͏͏ the͏͏ festive͏͏ season,͏͏ which͏͏ is͏͏ meant͏͏ for͏͏ everyone,͏͏ not͏͏ just͏͏ those͏͏ in͏͏ metro͏͏ cities͏͏ or͏͏ high-density͏͏ areas.͏͏ We͏͏ aim͏͏ to͏͏ ensure͏͏ that͏͏ customers͏͏ across͏͏ the͏͏ country͏͏ have͏͏ access͏͏ to͏͏ deals,͏͏ a͏͏ wide͏͏ selection͏͏ of͏͏ products,͏͏ and͏͏ fast͏͏ service͏͏ at͏͏ scale,”͏͏ said͏͏ Saurabh͏͏ Srivastava,͏͏ vice͏͏ president͏͏ of͏͏ categories͏͏ at͏͏ Amazon͏͏ India.
“Millennials͏͏ make͏͏ up͏͏ 60%͏͏ of͏͏ our͏͏ shopper͏͏ base͏͏ and͏͏ significantly͏͏ influence͏͏ shopping͏͏ trends͏͏ on͏͏ our͏͏ platform.͏͏ Their͏͏ preferred͏͏ categories͏͏ include͏͏ fashion,͏͏ home͏͏ and͏͏ kitchen,͏͏ beauty͏͏ and͏͏ personal͏͏ care,͏͏ electronic͏͏ accessories,͏͏ as͏͏ well͏͏ as͏͏ office͏͏ and͏͏ stationery͏͏ items.͏͏ Popular͏͏ searches͏͏ feature͏͏ smartwatches,͏͏ water͏͏ bottles,͏͏ ready-to-wear͏͏ sarees,͏͏ shoe͏͏ racks,͏͏ nail͏͏ polish,͏͏ and͏͏ lunch͏͏ bags,”͏͏ said͏͏ a͏͏ spokesperson͏͏ from͏͏ Meesho.
Chaitanya͏͏ Ramalingegowda,͏͏ co-founder͏͏ of͏͏ Wakefit,͏͏ which͏͏ sells͏͏ mattresses͏͏ and͏͏ furniture,͏͏ stated͏͏ that͏͏ consumer͏͏ demand͏͏ has͏͏ consistently͏͏ rebounded͏͏ over͏͏ the͏͏ past͏͏ 10͏͏ months,͏͏ leading͏͏ to͏͏ high͏͏ expectations͏͏ for͏͏ festive͏͏ sales.͏͏ He͏͏ anticipates͏͏ double-digit͏͏ growth,͏͏ with͏͏ key͏͏ days͏͏ experiencing͏͏ sales͏͏ up͏͏ to͏͏ 10͏͏ times͏͏ the͏͏ usual͏͏ levels.
Industry͏͏ experts͏͏ suggest͏͏ that͏͏ quick͏͏ commerce͏͏ is͏͏ well-suited͏͏ for͏͏ certain͏͏ categories͏͏ and͏͏ is͏͏ disrupting͏͏ some͏͏ areas͏͏ of͏͏ e-commerce.͏͏ However,͏͏ it͏͏ is͏͏ not͏͏ applicable͏͏ to͏͏ all͏͏ categories;͏͏ for͏͏ instance,͏͏ electronics͏͏ remain͏͏ a͏͏ significant͏͏ segment͏͏ in͏͏ e-commerce͏͏ that͏͏ quick͏͏ commerce͏͏ cannot͏͏ replicate,͏͏ along͏͏ with͏͏ larger͏͏ items͏͏ like͏͏ furniture.
“Due͏͏ to͏͏ the͏͏ bulky͏͏ nature͏͏ of͏͏ our͏͏ core͏͏ products,͏͏ such͏͏ as͏͏ mattresses͏͏ and͏͏ furniture,͏͏ quick͏͏ commerce͏͏ is͏͏ not͏͏ yet͏͏ optimised͏͏ for͏͏ these͏͏ items.͏͏ However,͏͏ smaller͏͏ products͏͏ like͏͏ pillows͏͏ and͏͏ accessories͏͏ are͏͏ well-suited͏͏ for͏͏ quick͏͏ commerce,͏͏ and͏͏ we͏͏ anticipate͏͏ a͏͏ significant͏͏ contribution͏͏ from͏͏ this͏͏ segment͏͏ during͏͏ the͏͏ festive͏͏ season,”͏͏ Ramalingegowda͏͏ added.
“We͏͏ are͏͏ witnessing͏͏ strong͏͏ traction͏͏ on͏͏ quick-commerce͏͏ platforms͏͏ and͏͏ are͏͏ actively͏͏ collaborating͏͏ with͏͏ all͏͏ the͏͏ major͏͏ players͏͏ in͏͏ this͏͏ space.͏͏ That͏͏ said,͏͏ e-commerce͏͏ remains͏͏ the͏͏ largest͏͏ channel͏͏ and͏͏ is͏͏ critical͏͏ for͏͏ driving͏͏ revenues,”͏͏ said͏͏ Gaurav͏͏ Nayyar,͏͏ chief͏͏ operating͏͏ officer͏͏ at͏͏ homegrown͏͏ wearable͏͏ and͏͏ audio͏͏ products͏͏ brand͏͏ Boat.͏͏ Quick͏͏ commerce͏͏ is͏͏ the͏͏ third͏͏ largest͏͏ sales͏͏ channel͏͏ for͏͏ the͏͏ startup.
Boat͏͏ anticipates͏͏ a͏͏ surge͏͏ in͏͏ demand͏͏ for͏͏ its͏͏ premium͏͏ products.
For͏͏ snacking͏͏ brand͏͏ Farmley,͏͏ quick͏͏ commerce͏͏ is͏͏ expected͏͏ to͏͏ make͏͏ a͏͏ significant͏͏ contribution͏͏ this͏͏ season.͏͏ “The͏͏ platforms͏͏ have͏͏ been͏͏ growing͏͏ rapidly,͏͏ and͏͏ we͏͏ aim͏͏ to͏͏ increase͏͏ our͏͏ category͏͏ share͏͏ alongside͏͏ that.͏͏ It’s͏͏ unlocking͏͏ market͏͏ access͏͏ for͏͏ us,”͏͏ said͏͏ co-founder͏͏ Abhishek͏͏ Agarwal.
“For͏͏ the͏͏ upcoming͏͏ festive͏͏ and͏͏ travel͏͏ season,͏͏ Scapia͏͏ is͏͏ forecasting͏͏ a͏͏ 50%͏͏ growth͏͏ in͏͏ international͏͏ travel.͏͏ This͏͏ surge͏͏ will͏͏ be͏͏ further͏͏ boosted͏͏ by͏͏ a͏͏ 5-6͏͏ fold͏͏ increase͏͏ in͏͏ credit͏͏ card͏͏ spending͏͏ on͏͏ online͏͏ festival͏͏ shopping,͏͏ allowing͏͏ customers͏͏ to͏͏ earn͏͏ rewards͏͏ redeemable͏͏ for͏͏ travel͏͏ bookings͏͏ on͏͏ the͏͏ app,”͏͏ said͏͏ Anil͏͏ Goteti,͏͏ founder͏͏ of͏͏ the͏͏ travel-focused͏͏ fintech͏͏ firm.
