Online festive sale: 68 crore smartphones purchased every hour – Times of India


NEW DELHI: New launches, EMI Options, discount offers and several upgrade plans have ensured a strong demand for mobile phones and electronic appliances during the ongoing festive sales. According to a report by research firm, Redseer Consulting, smartphones worth Rs 68 crore were purchased every hour on the e-commerce platforms. Among all e-tailers, Flipkart has even surpassed Amazon to emerge as the leader during the festive sales with a 64% market share.
The first week of sales on e-commerce platforms has generated Gross Merchandise Value (GMV) of $4.6 billion (Rs 32,000 crore), a 32 per cent year-on-year sales growth. The overall number of shoppers grew 20 per cent on year, led by Tier-II buyers who constituted 61 per cent of the base. In fact, the GMV per user has gone up from Rs 4,980 in 2020 to Rs 5,034 in 2022.
So what’s driving the sales this year?
“The festive season this year has been one that is driven by a larger theme of affordability. Constructs were built carefully by the platforms through BNPL schemes and bank tie-ups as well as seller driven discounts to serve up the most competitive prices of top leading brands and serve the aspiring customer,” said Ujjwal Chaudhry, associate partner at RedSeer Consulting.
Here are some more factors that drove sales.
1. Fashion has made a comeback: Fashion has picked up slack, driven by customer demand to refresh their wardrobes as Covid restrictions have eased across the country and people are stepping out again. Secondly, newer affordable platforms are now reaching Tier II and III customers. While and still contribute to 70% of the overall fashion sales, the remaining market saw Meesho emerge as a winner with a 39% share. With their affordable offering, they are targeting a typical Indian household looking for good value products.
2. Tier II continues to show up: Tier II population is driving festive sales on the different platforms largely enabled by various affordability schemes. With over 40 million shoppers coming from T2+ cities- this festive was one that was dictated by affordability schemes.
3. Fast delivery: eCommerce platforms were able to shave an average of 5 hours on delivery timelines thanks to better warehouse planning and a streamlined supply chain
4. Newer customers: The festive sales this year proved that brands and sellers selling online have reason to be bullish about the future with increased adoption of online shopping in Tier II+ cities and newer customers coming online for the first time.
5. Mobiles continued to dominate the % share of all products across different platforms: With mid- and high-end brands becoming more attainable thanks to banking partnerships and seller-driven discounts, mobiles and appliances remained strong this year.
What didn’t work? Demand for other categories like home furnishings, decor and furnishings have been subdued this year.
RedSeer had earlier said that the platforms will clock over $9 billion gross merchandise value (GMV) during the festive season. The report estimates that over 75 per cent customers are planning to buy equivalent to or more than last year across categories like mobiles, large appliances, beauty and fashion.


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