Walmart-owned Indian ecommerce giant Flipkart is reportedly on track to see a 15-20% increase in its gross merchandise value (GMV) at INR 33,000-INR 36,000 Cr during the festive season sale this year, expected to last for 40-45 days till around Diwali next month.
“The start of the sale cycle has been positive, which began on October 8 and should be on track to hit GMV of around $4-$4.5 Bn,” ET cited a source as saying.
Flipkart, which has maintained its market leadership position over rival Amazon India for the past two years, initiated the second phase of its festive season sale on Sunday.
During the initial week of this year’s festive season sales on ecommerce platforms, the GMV witnessed a notable 18% growth, amounting to approximately $4 Bn, as reported by Datum Intelligence, a market research firm. Datum Intelligence anticipates that the ecommerce industry will reach an overall GMV of about $9 Bn by the conclusion of this year’s festive season.
This is in line with the estimates of consulting firm RedSeer, which said the Flipkart Group retained its top position during the first week of the ecommerce festive season sale this year and accounted for 63% of the GMV. The firm, which expects GMV of the country’s ecommerce sector to surge 18-20% to INR 90,000 Cr this festive season, said the platforms clocked a GMV of INR 47,000 Cr during the first week of the sale this year.
During its The Big Billion Days (TBBD) festive season sale, which took place from October 8 to October 15 this year, Flipkart achieved a remarkable milestone with 1.4 Bn customer visits. The ecommerce giant also reported substantial growth among its sellers during this period. According to Flipkart, sellers conducting transactions experienced a 2.5-fold increase in their business compared to the period before the festive season.
In a statement, Flipkart said, “Demonstrating an overall improvement in consumer sentiment, the 10th edition of TBBD saw an unprecedented 1.4 Bn customer visits during the early access and seven days of the shopping festival.”
During this period, Flipkart further disclosed that over 60% of orders were received from Tier-I, II and III cities on the early access and the first day of TBBD.
D2C Brands Taking the Lead
The Indian market is expected to surpass 500 Mn online shoppers by 2030, growing at a 12% compound annual rate from 205 Mn in 2022, as per a report.
In the ongoing quarter, the homegrown ecommerce industry is predicted to experience robust growth of over 20%. The D2C segment is set to play a pivotal role, with an estimated 40% quarter-over-quarter growth from October to December. Established ecommerce giants like Amazon, Flipkart, and Meesho could also see around a 30% increase in sales, according to experts.
To make the most of this anticipated increase in demand, ecommerce giants are aggressively wooing and engaging sellers through various strategic initiatives. They are offering attractive commission rates, providing advanced selling tools, enhancing the overall selling experience, and expanding their outreach.
Meesho recently opened its platform to non-GST registered sellers, while Amazon India introduced its multi-channel fulfillment (MCF) service for D2C brands and retailers to help manage customer orders from different channels.
Flipkart, on the other hand, announced a 27% increase in its seller count, surpassing 1.4 Mn sellers. Meesho too claims to have 1.4 Mn sellers on its platform, while Amazon boasts of over 1.2 Mn sellers.
Update: The story has been edited to update Meesho’s seller base to 1.4 Mn from 1.3 Mn earlier following a clarification from the ecommerce platform.
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