E-commerce companies could see a 20% increase in holiday sales this year: RedSeer study

MUMBAI: E-commerce companies like Amazon, Flipkart and Meesho could collectively record sales (gross merchandise value) of Rs 100,000-120,000 crore during the festive season, which would translate into a 20% year-on-year growth, as per estimates released by Redseer Strategy Consultants. Company analysts say high pent-up demand and consumer willingness to go premium will drive it.
High-speed trading is expected to account for approximately 8% of the total growth of e-commerce during the holiday season, compared to 5% last year.
“Mobile phones and electronics remain key drivers of value and growth during the holiday season, especially as consumers respond to affordability options that make premium products more accessible. Moreover, sellers and platforms have the potential to unlock pent-up demand in this category by optimizing for pricing and selection.” said Kushal Bhatnagar, Associate Partner at Redseer Strategy Consultants.
To increase sales, brands are adopting a multi-channel strategy. For example, premium products are presented in modern offline outlets (both multi-brand and exclusive) and in direct-to-consumer (D2C) online channels to maintain a sense of exclusivity. At the same time, mid-range products are being promoted in e-commerce markets to maximize reach and attract the attention of aspiring customers, analysts say.
Flipkart said that over 33 billion user visits were recorded on the platform during early access and the first day of the annual edition. Christmas sales with categories such as Mobile Phones, Electronics, Large Home Appliances, Fashion, Beauty and Home Products, which are the most popular among customers. Myntra said that 120 million users visited the platform in the first two days.
Amazon claimed its holiday sales were its biggest opening ever for sellers and brand partners.
The highest number of Prime members ever made purchases in the first 24 hours – over 140% of members made purchases within that time and made eight times more purchases compared to their average daily purchases. Amazon Great Indian Festival 2024 witnessed encouraging demand from tier II and III cities across key categories including Home Appliances, Fashion & Beauty, Smartphones and Furniture,” the company said on Monday.
Meesho said it saw a 100% increase in first-day orders compared to last year and more than tripled its daily orders.