According to a survey by consulting firm Redseer, e-commerce retailers headed by Amazon and Flipkart are predicted to generate sales worth $11.8 billion during the holiday season, more than doubling the $5 billion pre-pandemic projection for 2019.
According to the report, Covid-19 has accelerated the transition to e-commerce as more consumers are buying online more frequently than they were in 2018. This year’s figures are anticipated to climb by 28% to around $9.2 billion for 2021.
Online Sales Touching $11.8 Billion
The holiday season begins on the first sales day and lasts about until the week of Diwali, with non-sale days sprinkled throughout. Sales for the first week of the 2019 festival season are projected to total $5.9 billion, according to the report.
The survey did indicate, however, that the proportion of online retail gross merchandise value (GMV) attributable to the holiday season is declining as a result of the rising frequency of transactions fueled by year-round sale occasions.
GMV is the total cost of goods sold over a specific period. According to the estimate, the surge in sales will cause the total online retail GMV to increase 30% from $52 billion in 2021 to $68 billion this year.
Sanjay Kothari, associate partner, of Redseer Strategy Consultants said that in comparison to 2018, they predict a 4x increase in online shoppers. Accelerated digital adoption and rising penetration in tier-2 cities and beyond have been the driving forces behind this. They anticipate that this larger client base will result in increased revenue during the holiday season.
He noted that the introduction of new e-commerce platforms like live and video commerce will enhance the rise of online shoppers, particularly in tier-II cities and beyond.
Robust Growth in Festive Season
During this festive period, the fashion category will have strong growth, led by an expanding customer base from Tier II cities. The survey added that the participation of online consumers over the holiday week has also doubled from 18% in 2018 to a projected 38% this year. The mobile and electronics sector is anticipated to stay robust throughout the festive sales powered by greater prices and new releases, the report said.
Kothari said that this is mostly because buyers are becoming more aware of the holiday sales, the reach of the sales is expanding, the selection is more focused, and there are more affordable products available to shoppers from different sorts of cities.
According to a survey by the human resources analytics company TeamLease, employers will increase the size of their present workforce by 20% during the season that runs from October through December. Additionally, it predicts that by the end of 2022, India will have 372 million online shoppers.
About the Festival Events
To capitalize on the holiday shopping fervor, Flipkart’s Big Billion Days event and Amazon’s Great Indian Festival are planned for later this year. Another major shop, Myntra, is preparing for its “Big Fashion Festival.”
According to a joint report from industry group FICCI and property consultancy Anarock, the Indian e-commerce market is projected to grow from $38 billion in 2021 to $120 billion by 2026. This rising trend in retail and e-commerce businesses will support the country’s warehousing and logistics sector’s economic expansion.
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