BENGALURU : Indians are expected to add $ 9 billion worth of products to their online shopping carts this holiday season despite reopening of physical stores after pandemic restrictions eased, indicating continued momentum for e-commerce businesses.
RedSeer Consulting expects sales to increase 23% this year from the $ 7.4 billion total gross value of goods (GMV) of merchandise sold on e-commerce platforms during the holiday months in 2020. However, the expected gains are slower than the record growth of 48%. last year, when offline establishments saw sales plummet over fear of covid and pandemic restrictions.
RedSeer, however, estimates that e-commerce companies will achieve sales worth $ 4.8 billion in the first week of festive sales this year, a 30% increase from 2020. The companies E-commerce companies recorded nearly $ 3.7 billion in GMVs in the first week of festive sales. year.
Also this year, GMV’s growth will be driven by customers in Tier II cities and beyond as they choose e-commerce for greater discounts and convenience, RedSeer said.
RedSeer predicts that around 55-60% of online shoppers will come from small towns during the holiday season.
“We believe the 2021 online festive sales will continue to benefit from the favorable winds of greater digital consumer adoption, supported by increasingly positive macro and consumer sentiment following the passage of the second wave of covid, ”said Mrigank Gutgutia, associate partner at RedSeer. At the same time, we are seeing a strong uptrend from sellers towards festive sales, as almost 80% of them believe that the holiday season will allow them to generate strong sales growth and make up for the losses. during the covid period. “
Following a similar trend to previous festive sales, mobile and electronics will remain popular shopping categories during the holiday season, contributing nearly 73% of the GMV of e-commerce sales this year as well, according to estimates. In addition, fashion is expected to contribute 16% of the overall festive GMV this year.
Growth in mobile and electronics sales will be fueled by platforms offering easier payment terms, including Equivalent Monthly Payment Offers (EMI) and Buy Now Offers (BNPL) in association with partners.
“The most significant change that we have seen for e-commerce during the festive sales is in new financing constructions, especially the EMI and BNPL programs offered by the platforms through partnerships. It will continue to be an important flavor this holiday season as well, ”said Ujjwal Chaudhry, Associate Partner, RedSeer.
In addition, the total GMV recorded by the e-commerce industry is expected to jump 37% in calendar year 2021 from the previous year, to between $ 49 billion and $ 52 billion, according to RedSeer’s estimates. . Last year, the e-commerce industry recorded more than $ 38 billion in annual GMV.
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