Amazon, Flipkart Festive Sale: Rs 67,000 Crore Of Products Expected To Be Sold!
Amazon, Flipkart and others could earn $9 billion in gross Gross Merchandise Value (GMV) during the festive season this year.
This is more than the $7.4 billion registered last year – a growth of 23%.
Gross GMV refers to the total value of goods sold before subtracting cancellation or return.
The growth reflects a surge in consumption, especially online.
The trend gained pace during the pandemic.
Lower tier cities are also one of the big drivers of growth, comprising 55-60% of the total shopper base this year.
In the first week of the festive season alone, e-commerce sites are expected to achieve 30% year-on-year growth in gross GMV to $4.8 billion.
For the full year, the overall online gross GMV is expected to touch $49-52 billion.
This is a 37% growth from last year when $38.2 billion in gross GMV was registered.
This growth can be attributed to strong consumer funnel expansion and the high adoption of online in the pandemic.
However, offline retail may pose a challenge to online retail since recovery is almost up to pre-Covid levels.
The mobile category will continue to dominate, bolstered by new launches.
It could account for 11% of the gross GMV ($4.8 billion) in the first week of the festive sales.
The Electronics and Appliances category will also continue their momentum which has risen to 16% from 14% share last year.
This is helped by consumers who wait for the festive period when new launches and attractive discounts are on offer.
Flexible payment options such as EMIs and Buy Now Pay Later (BNPL) are expected to be a strong contributor in this category.
Fashion category is also on the mend with greater outdoor mobility of consumers and steady rebound of fashion/office wear.
Sellers are optimistic that they will recover losses suffered due to Covid, with nearly 80% being in agreement.
They are hopeful that with “greater consumer digital adoption supported by an increasingly positive macro and consumption sentiment post the COVID second wave” will help their businesses.
2021 Sale Dates
Flipkart will open the online festive season sale with the 8th edition of its biggest flagship event, The Big Billion Days, from October 7-12.
Amazon will launch this year’s ‘Great Indian Festival’ sale on October 4.
Prime members gain 12 hours early access to the sale.
However, the duration of the event has not been revealed yet.
It is likely that it could run for a month, possibly concluding on Diwali which is on November 4 this year.