Oct, 2015     

Oct-15 E-tailing Festive Sale Insights


Study Background

Objectives of the study

Key points to be covered
Gathering insights on multiple aspects of the festive sale period from 13th-17th of October 2015 including :-

  • Industry sales performance and impact
  • Customer experience and perspective on the sales
  • Seller experience
  • E-Tailer benchmarking on supply chain and sales performance

Key methodologies used
Assessing industry and player level performance during the sales period through:

  • Secondary research and primary research with industry experts
  • Mystery shopping on 750+ items
  • Primary Interviews with 100+ sellers
  • Primary Interviews with 500+ customers

Note: 1. Most of the figures are for festive days, which refer to 13th-17th October 2015
2. Sales/GMV related performance numbers are broad estimates
3. USD 1=INR 60 has been assumed across the deck

Disclaimer: The numbers and analysis quoted in the report have been developed through RedSeer research with industry experts and sellers, online reports and mystery shopping. The report is a fact-based study and should not be interpreted as a recommendation document

Average order values for the industry grew by ~50% compared to the presale period

Growth in industry AOV

During the sales period from 13th-17th October

Sales Growth
Key growth drivers

  • Increased volumes sold of high ticket size categories like mobiles and tablets
  • Increased sales of premium items across categories, driven by:
    1. Availability of good deals on multi-item combos across product categories
    2. Availability of multiple cashback schemes across banks and categories

Customers feel that the app centric initiatives of e-tailers are helping to improve their online shopping experience

Customer shopping experience on app

N=500 unique shoppers interviewed
Q. Do you think that app-centric initiatives by e-tailing companies are improving your shopping experience?

online shopping
graph colours

What customers liked about shopping on apps

  • Easy sharing of products and faster access of views by friends and family
  • Push notifications for available sales and product availability as per browsing history and wishlist
  • Browse anywhere anytime

Customer Wishlist from apps

  • Better navigation and browsing features
  • Easier way to compare products
  • Easy sharing of wishlist with friends

Note: 1. Agree rating is classified as Agree / Strongly agree, Doesn't Matter rating as Neither agree nor disagree & Disagree rating as Disagree / Strongly disagree
2. Distribution of respondents across Metro, Tier-1 and Tier-2+ is 54%, 33% and 13% respectively.

The sellers were split across metros and the product categories

Respondent profile

By product category and region

seller

A statistically significant sample of sellers was chosen that gives 96% confidence level and 10% of error margin on the findings

Note: Single platform sellers were 15%, Double platform : 24%, Triple platform : 22% and Four platform : 39%

Inspite of the high volumes dispatched by e-tailers during the sales period, their compliance levels did not decline

Impact of high sales volumes on compliance

Comparison between pre-sales vs. sales period

Comparison between pre-sales vs. sales period

  • Compliance for Flipkart remained same when compared between pre-sales and sales period even after witnessing a 300% rise in daily volume during sales period
  • Amazon increased the number of buffer days to increase their compliance levels during sales period

Notes: 1) % change is computed between the sales and pre sales period.

This document covers the performance of the e-tailers in the October 2015 festive season.