‘India’s e-com sales to cross $80 bn by 2022’
Majors log $3 bn in 6-day sale: Redseer
India’s e-commerce sector is expected to remain bullish in the coming years and sales are estimated to cross $80 billion by 2022.
Festive day sales alone may bring in volumes to the tune of $8 billion in that year, says RedSeer, a consulting firm focussed on Internet businesses in India and Asia. To place this in perspective, a Redseer study said e-tailers had achieved $3 billion worth of gross merchandise value (GMV) during their recent 6-day festive sale, despite challenging macro conditions. This is a 30% jump over last year’s festive sales of $2.3 billion. For the whole of October, sales are expected to be in the range of $6 billion, as per the study.
“The overall outlook is quite positive. Indian e-com players are working hard to increase sales volumes, add more categories and make platforms more interactive, engaging and accessible,” said Mrigank Gutgutia, a director at RedSeer.
China’s one day e-com sales sometimes would cross $25 billion. India was a beginner and therefore holds ‘huge’ potential for growth, Mr. Gutgutia said.
As per Redseer estimates, India’s e-commerce sales would be $32 billion in calendar 2019, a 33% rise over $24 billion last year. E-tailers logged festival sales of about $2.3 billion last year, which was 9% of the whole year GMV sales of $25 billion.
All e-commerce players, including key players Amazon and Walmart Flipkart, are currently in the process of developing strategies to cash in on tier 2 and tier 3 markets and smaller villages across the country.
Several e-tailers track micro entrepreneurs, mostly women groups operating on WhatsApp.. They are increasing their vernacular focus and improving user interface, to get more buyers on their platforms. Some are also working on video based platforms that will offer games, entertainment and deals.
“All these will open up huge growth opportunities and markets for India’s e-com sector,” said Mr. Gutgutia. ”If all goes well, next year’s festive season will witness a bumper sale,” predicts K. Vaitheeswaran, India’s e-commerce pioneer and co-founder, Again Drinks and author of ‘Failing to Succeed’.
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