What does the 2019 e-tailing festive season have in store?

E-Tailers on track to sell USD ~3.7 Bn of goods during festive event 1- up 60-65% y-o-y

Published on: Sep 2019

Key drivers of growth to be an expansion in online shoppers who will likely shop across categories (even beyond mobiles)

• Compared to business as usual days, we expect that e-tailers will likely see a GMV spike of ~ 7X on these festive days (vs 6x last year)
• More than 75 Mn gross transactions expected over the 6-day period this year vs ~45 Mn in 2018 festive days
• Continued festive days growth is in-line with overall annual growth of the industry which is on track to grow 32% for the whole year 2019 to reach USD 32 Bn for CY19

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Total unique shoppers expected to grow ~60% y-o-y, with many of them from Bharat; order values to drop slightly

Many of these shoppers to be from Tier 2+ cities/Bharat, who will likely be attracted by-

• Improved/refined vernacular interface of platforms and wider than ever selection across categories
• Attractive deals and easier credit availability, breaking the affordability barrier
• The promise of fast delivery across categories driven by the widest supply chain network ever spread across smaller cities and regions

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Consumer electronics and fashion are likely the most popular categories amongst customers to purchase this year

• There is a wider trend of mobiles sales growth slowing down and mobiles accounting for a lesser share of GMV in 2019 than earlier years
• RedSeer’s consumer sentiment analysis also shows that consumer electronics and fashion are preferred categories amongst consumers this year
• Furniture also to be a key growth category in this festive season, driven by selection and upgraded supply chains

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Historically, festive GMV has been more dependent on mobiles

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For the whole festive month from starting from 29th Sep 2019, e-tailers likely to achieve USD ~7 Bn GMV