Online retailers such as Flipkart and Amazon are expected to record 20-25% growth in festive season sales this year, reflecting the response during the first three days of sales, as estimated by Datum Intelligence and͏͏ senior͏͏ industry͏͏ executives͏͏ familiar͏͏ with͏͏ the͏͏ sales͏͏ trends.
Significant͏͏ Sales͏͏ Increase͏͏ Recorded:
From͏͏ September͏͏ 26͏͏ to͏͏ 28,͏͏ online͏͏ retailers͏͏ recorded͏͏ a͏͏ sales͏͏ increase͏͏ of͏͏ approximately͏͏ 26%͏͏ compared͏͏ to͏͏ last͏͏ year,͏͏ reaching͏͏ around͏͏ INR͏͏ 26,500͏͏ crore͏͏ ($3.2͏͏ billion),͏͏ according͏͏ to͏͏ Datum͏͏ Intelligence,͏͏ which͏͏ monitors͏͏ ecommerce͏͏ data.͏͏ The͏͏ market͏͏ researcher͏͏ anticipates͏͏ gross͏͏ sales͏͏ of͏͏ $12͏͏ billion͏͏ for͏͏ this͏͏ festive͏͏ season,͏͏ reflecting͏͏ a͏͏ growth͏͏ of͏͏ about͏͏ 23%,͏͏ inclusive͏͏ of͏͏ discounts͏͏ and͏͏ returns.
Flipkart Meets͏͏ Internal͏͏ Targets:
E-retail͏͏ giant͏͏ Flipkart͏͏ is͏͏ on͏͏ track͏͏ to͏͏ meet͏͏ its͏͏ internal͏͏ targets͏͏ for͏͏ this͏͏ festive͏͏ season,͏͏ as͏͏ indicated͏͏ by͏͏ the͏͏ first͏͏ three͏͏ days͏͏ of͏͏ sales.͏͏ The͏͏ first͏͏ day͏͏ of͏͏ the͏͏ sale͏͏ was͏͏ exclusively͏͏ available͏͏ to͏͏ paid͏͏ VIP͏͏ and͏͏ Plus͏͏ members,͏͏ similar͏͏ to͏͏ Amazon͏͏ Prime.͏͏ “Day͏͏ 1͏͏ typically͏͏ caters͏͏ to͏͏ high-frequency͏͏ buyers,͏͏ and͏͏ the͏͏ next͏͏ day͏͏ it͏͏ opens͏͏ to͏͏ everyone…͏͏ With͏͏ three͏͏ days͏͏ of͏͏ trends͏͏ available,͏͏ Flipkart’s͏͏ sales͏͏ are͏͏ on͏͏ target,”͏͏ noted͏͏ one͏͏ of͏͏ the͏͏ executives͏͏ mentioned͏͏ above.
A͏͏ chief͏͏ executive͏͏ of͏͏ a͏͏ third-party͏͏ logistics͏͏ company͏͏ confirmed͏͏ the͏͏ sales͏͏ trajectory͏͏ up͏͏ until͏͏ Sunday͏͏ afternoon.
The͏͏ first͏͏ week͏͏ of͏͏ festive͏͏ sales,͏͏ including͏͏ Flipkart’s͏͏ Big͏͏ Billion͏͏ Days͏͏ and͏͏ Amazon͏͏ India’s͏͏ Great͏͏ Indian͏͏ Festival,͏͏ is͏͏ the͏͏ most͏͏ critical͏͏ period͏͏ within͏͏ the͏͏ 45-50͏͏ day͏͏ sales͏͏ window.͏͏ This͏͏ week͏͏ also͏͏ sets͏͏ the͏͏ tone͏͏ for͏͏ the͏͏ remainder͏͏ of͏͏ the͏͏ festive͏͏ season͏͏ leading͏͏ up͏͏ to͏͏ Diwali.
Continue͏͏ Exploring:͏͏ Flipkart,͏͏ Amazon͏͏ to͏͏ kick͏͏ off͏͏ major͏͏ festive͏͏ sales͏͏ from͏͏ September͏͏ 26
Surge͏͏ in͏͏ Consumer͏͏ Demand͏͏ Across͏͏ Categories:
Several͏͏ brands͏͏ across͏͏ segments͏͏ such͏͏ as͏͏ luggage,͏͏ electronics,͏͏ accessories,͏͏ and͏͏ household͏͏ items͏͏ reported͏͏ experiencing͏͏ significant͏͏ growth͏͏ compared͏͏ to͏͏ typical͏͏ business-as-usual͏͏ (BAU)͏͏ days.
“Mobile͏͏ devices,͏͏ electronics,͏͏ consumer͏͏ durables,͏͏ home͏͏ goods,͏͏ and͏͏ general͏͏ merchandise͏͏ represented͏͏ 79%͏͏ of͏͏ sales͏͏ during͏͏ this͏͏ period.͏͏ Sales͏͏ in͏͏ fashion,͏͏ grocery,͏͏ and͏͏ beauty͏͏ and͏͏ personal͏͏ care͏͏ also͏͏ surged͏͏ by͏͏ two͏͏ to͏͏ four͏͏ times,”͏͏ stated͏͏ Satish͏͏ Meena,͏͏ advisor͏͏ at͏͏ Datum͏͏ Intelligence.
Both͏͏ Flipkart͏͏ and͏͏ Amazon͏͏ stated͏͏ in͏͏ separate͏͏ announcements͏͏ that͏͏ they͏͏ continue͏͏ to͏͏ experience͏͏ strong͏͏ demand͏͏ across͏͏ various͏͏ segments.
Vidit͏͏ Aatrey,͏͏ co-founder͏͏ of͏͏ Meesho,͏͏ an͏͏ ecommerce͏͏ marketplace͏͏ targeting͏͏ smaller͏͏ cities͏͏ and͏͏ towns,͏͏ posted͏͏ on͏͏ X͏͏ on͏͏ Saturday,͏͏ stating,͏͏ “By͏͏ 2͏͏ PM͏͏ yesterday,͏͏ we͏͏ had͏͏ already͏͏ exceeded͏͏ our͏͏ previous͏͏ record͏͏ for͏͏ the͏͏ highest͏͏ number͏͏ of͏͏ orders͏͏ placed͏͏ on͏͏ Day͏͏ 1͏͏ last͏͏ year,͏͏ and͏͏ by͏͏ the͏͏ end͏͏ of͏͏ the͏͏ day,͏͏ that͏͏ figure͏͏ had͏͏ more͏͏ than͏͏ doubled.”
According͏͏ to͏͏ Meena,͏͏ while͏͏ sales͏͏ of͏͏ mobile͏͏ devices,͏͏ consumer͏͏ durables,͏͏ and͏͏ home͏͏ segments͏͏ met͏͏ expectations,͏͏ “other͏͏ categories͏͏ like͏͏ fashion͏͏ and͏͏ beauty͏͏ and͏͏ personal͏͏ care͏͏ also͏͏ experienced͏͏ a͏͏ significant͏͏ uptick…͏͏ Overall,͏͏ the͏͏ mobile͏͏ category͏͏ is͏͏ projected͏͏ to͏͏ grow͏͏ by͏͏ 19%͏͏ in͏͏ value,”͏͏ he͏͏ added.
Typically,͏͏ smartphones,͏͏ large͏͏ appliances,͏͏ electronics,͏͏ and͏͏ fashion͏͏ are͏͏ among͏͏ the͏͏ top͏͏ sales͏͏ drivers͏͏ during͏͏ festive͏͏ seasons.͏͏ With͏͏ the͏͏ availability͏͏ of͏͏ quick͏͏ delivery͏͏ options,͏͏ the͏͏ sales͏͏ mix͏͏ is͏͏ evolving͏͏ across͏͏ platforms.
Rise͏͏ of͏͏ Quick͏͏ Commerce͏͏ Impacting͏͏ Online͏͏ Marketplaces:
Online͏͏ marketplaces͏͏ have͏͏ been͏͏ affected͏͏ by͏͏ the͏͏ rise͏͏ of͏͏ quick͏͏ commerce,͏͏ which͏͏ is͏͏ impacting͏͏ their͏͏ businesses͏͏ in͏͏ major͏͏ cities,͏͏ making͏͏ the͏͏ festive͏͏ season͏͏ particularly͏͏ crucial͏͏ this͏͏ year.͏͏ Flipkart͏͏ has͏͏ expanded͏͏ its͏͏ own͏͏ quick͏͏ commerce͏͏ service,͏͏ Minutes,͏͏ to͏͏ approximately͏͏ 80-100͏͏ dark͏͏ stores,͏͏ as͏͏ previously͏͏ reported.͏͏ Amazon͏͏ is͏͏ also͏͏ gearing͏͏ up͏͏ to͏͏ launch͏͏ its͏͏ quick͏͏ commerce͏͏ services͏͏ soon.͏͏ Both͏͏ companies͏͏ had͏͏ previously͏͏ considered͏͏ acquisitions͏͏ to͏͏ establish͏͏ a͏͏ foothold͏͏ in͏͏ the͏͏ quick͏͏ commerce͏͏ segment.͏͏ Myntra͏͏ noted͏͏ that,͏͏ in͏͏ addition͏͏ to͏͏ fashion,͏͏ segments͏͏ such͏͏ as͏͏ beauty͏͏ and͏͏ personal͏͏ care,͏͏ as͏͏ well͏͏ as͏͏ sports͏͏ footwear,͏͏ experienced͏͏ over͏͏ a͏͏ 50%͏͏ increase͏͏ in͏͏ demand.
Luggage͏͏ manufacturer͏͏ Uppercase,͏͏ which͏͏ secured͏͏ $9͏͏ million͏͏ from͏͏ Accel͏͏ last͏͏ month,͏͏ reported͏͏ that͏͏ its͏͏ sales͏͏ increased͏͏ fivefold͏͏ on͏͏ the͏͏ first͏͏ day.͏͏ “On͏͏ average,͏͏ over͏͏ these͏͏ three͏͏ days,͏͏ we͏͏ have͏͏ seen͏͏ sales͏͏ grow͏͏ by͏͏ 3.5͏͏ times͏͏ compared͏͏ to͏͏ our͏͏ business-as-usual͏͏ (BAU)͏͏ days,”͏͏ said͏͏ founder͏͏ Sudip͏͏ Ghose.͏͏ “By͏͏ offering͏͏ attractive͏͏ discounts͏͏ on͏͏ products,͏͏ we͏͏ are͏͏ able͏͏ to͏͏ boost͏͏ sales…͏͏ The͏͏ first͏͏ quarter͏͏ has͏͏ not͏͏ been͏͏ strong͏͏ for͏͏ the͏͏ industry,͏͏ as͏͏ revenge͏͏ buying͏͏ has͏͏ declined.͏͏ However,͏͏ we͏͏ are͏͏ anticipating͏͏ a͏͏ fantastic͏͏ third͏͏ quarter͏͏ starting͏͏ in͏͏ October,”͏͏ Ghose͏͏ added.
Mokobara,͏͏ another͏͏ luggage͏͏ brand,͏͏ is͏͏ also͏͏ conducting͏͏ a͏͏ sales͏͏ campaign͏͏ on͏͏ its͏͏ own͏͏ platform.͏͏ “Sales͏͏ are͏͏ strong͏͏ in͏͏ the͏͏ home͏͏ and͏͏ kitchen͏͏ categories,͏͏ with͏͏ demand͏͏ observed͏͏ across͏͏ both͏͏ ecommerce͏͏ and͏͏ quick͏͏ commerce͏͏ platforms.͏͏ Some͏͏ platforms͏͏ have͏͏ performed͏͏ better͏͏ than͏͏ others͏͏ in͏͏ managing͏͏ volumes͏͏ and͏͏ delivery͏͏ timelines,”͏͏ said͏͏ another͏͏ executive͏͏ at͏͏ a͏͏ direct-to-consumer͏͏ brand͏͏ that͏͏ sells͏͏ across͏͏ multiple͏͏ platforms.
Gaurav͏͏ Nayyar,͏͏ COO͏͏ of͏͏ Boat,͏͏ stated͏͏ that͏͏ sales͏͏ have͏͏ increased͏͏ by͏͏ over͏͏ 20%͏͏ across͏͏ product͏͏ categories͏͏ and͏͏ platforms͏͏ compared͏͏ to͏͏ last͏͏ year.
However,͏͏ some͏͏ deliveries͏͏ on͏͏ Amazon͏͏ India͏͏ may͏͏ experience͏͏ delays͏͏ in͏͏ certain͏͏ cities,͏͏ as͏͏ the͏͏ company͏͏ has͏͏ notified͏͏ top͏͏ vendors͏͏ about͏͏ ‘capacity͏͏ constraints͏͏ at͏͏ its͏͏ warehouses.’͏͏ This͏͏ means͏͏ that͏͏ sellers͏͏ will͏͏ need͏͏ to͏͏ ship͏͏ products͏͏ independently͏͏ rather͏͏ than͏͏ using͏͏ Amazon͏͏ fulfilment͏͏ centres.
Regarding͏͏ Amazon’s͏͏ warehouse͏͏ issue,͏͏ the͏͏ note͏͏ stated,͏͏ “Fulfilment͏͏ centres͏͏ are͏͏ currently͏͏ experiencing͏͏ capacity͏͏ constraints͏͏ across͏͏ specific͏͏ bin͏͏ types͏͏ within͏͏ the͏͏ India͏͏ network.͏͏ To͏͏ prevent͏͏ disruptions͏͏ at͏͏ the͏͏ fulfilment͏͏ centres͏͏ and͏͏ to͏͏ avoid͏͏ a͏͏ bullwhip͏͏ effect͏͏ across͏͏ the͏͏ India͏͏ networks,͏͏ we͏͏ are͏͏ postponing͏͏ pushouts͏͏ to͏͏ the͏͏ week͏͏ of͏͏ October͏͏ 6͏͏ or͏͏ later.”͏͏ It͏͏ added,͏͏ “September-end͏͏ appointments͏͏ have͏͏ been͏͏ rescheduled͏͏ to͏͏ October͏͏ 10,͏͏ while͏͏ October͏͏ appointments͏͏ have͏͏ been͏͏ pushed͏͏ to͏͏ the͏͏ end͏͏ of͏͏ the͏͏ month͏͏ due͏͏ to͏͏ a͏͏ lack͏͏ of͏͏ space͏͏ in͏͏ the͏͏ fulfilment͏͏ centres.͏͏ Consequently,͏͏ appointments͏͏ for͏͏ all͏͏ top͏͏ vendors͏͏ were͏͏ cancelled,͏͏ resulting͏͏ in͏͏ longer͏͏ delivery͏͏ times͏͏ for͏͏ most͏͏ products,”͏͏ said͏͏ a͏͏ top͏͏ seller͏͏ on͏͏ Amazon͏͏ India.
“New͏͏ appointment͏͏ slots͏͏ are͏͏ becoming͏͏ available,͏͏ and͏͏ our͏͏ teams͏͏ are͏͏ working͏͏ diligently͏͏ to͏͏ allow͏͏ sellers͏͏ to͏͏ inbound͏͏ more͏͏ inventory͏͏ into͏͏ our͏͏ fulfilment͏͏ centres,”͏͏ a͏͏ spokesperson͏͏ for͏͏ Amazon͏͏ India͏͏ stated.
