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Pandemic tailwinds: E-commerce sales set to double in 2020

“AOV (average order value) has increased from ₹1,300 in February to ₹1,500 and will go up further by ₹50-100 during the festival sales. While our customers buy groceries 3.1 times a month, our BBStar loyalty customers buy four times a month on BigBasket. Since we have already achieved so much of growth, we upped our growth targets for FY21 by 40-50 per cent and are well on track to achieve it,” he added.

Ready-to-cook category sees a spike in demand

The RTC market in India, RedSeer says, stood at Rs 2,100 crore in 2019, and is expected to grow at a CAGR of 18% to reach Rs 4,800 crore by 2024. Analysts predict that the Rs 8,000 crore organised RTE category is set to double in the next five years.

The on-demand grocery delivery market heats up

The e-grocery segment has been one of the fastest to recover from the impact of the Covid-19 pandemic, with sales numbers reaching the pre-Covid level in June itself. Meanwhile, in the same month, non-essential categories on e-commerce (such as fashion and electronics) saw sales amounting to 40% of pre-Covid times, according to RedSeer Benchmarks.

Retailers will have learnt their lessons from COVID-19 phase

The online retail sector was already growing at a fast pace in 2019. However, this year witnessed an unprecedented increase, and we estimate it crossed $15 billion on annualised GMV (gross merchandise value) during this period. This is $5 billion higher than what the online market was at the end of 2019.

Meet the Indian startup that seers

RedSeer has evolved from a one-man show in 2009 to a 200-odd member team in 2020, from a nondescript office in Koramangla to occupying three floors, replete with chic decor, in Bengaluru’s startup corridor HSR Layout, from working for free to commanding a price.

Demand for fashion could be in for an Eid boost

Integration of experiences across online and offline will be another critical element for retailers. Our research shows the “stickiness” of online fashion customers is highest at greater than 60 per cent. We have already seen luxury players working with online marketplaces and launching mono-brand online experiences to reach out to customers in this new environment.

Not the time for UAE F&B to fight it out

This symbiotic relationship resulted in the food delivery sector growing by more than 20 per cent in the UAE representing almost 7 per cent of total UAE food services market in 2019. Our discussions with restaurants indicate online restaurants saw an average of 30 per cent incremental sales as a result of food delivery platforms, with customers adopting this convenient model and ordering more than they normally would.

Non-essential e-commerce in the red even in Green & Orange zones

In some cases, etailers said they have not been able to open up fulfillment and sorting centres that fall in the Red zones, where infections continue to rise. “Ministry of Home Affairs (MHA) guidelines didn’t clarify the operations side of ecommerce… And, hence, confusion among local authorities for non-essential warehouses in Red zones is still there,” said a top executive at an e-commerce firm on condition of anonymity.

Covid reality check for India’s unicorns

The Covid-19 crisis has both accelerated that reckoning and transformed it by another order of magnitude. According to estimates by RedSeer Management Consulting, India’s internet economy is set to decline by as much as 90% this month compared with April 2019. The fall is driven by travel bookings, online retail and food delivery. In calendar 2019, the overall internet market stood at $70 billion, according to RedSeer.

‘It will be business as usual during festive season 2020’

We expect GMV of $6.6 billion (₹47,000 crore) in the October 2020 festive period, compared to $5 billion (₹35,500 crore) in the 2019 October festive period, indicating a massive explosion of pent up consumer demand. Both high-ticket items and fashion/home categories will do well.

Audio streaming apps posts surge in usage as more listeners tune in

According to a recent report by RedSeer Consulting, only 1% of the total user base of the top five music streaming apps in India are paid subscribers, contributing 40% to the revenue. The report adds that the apps will have to turn at least 6% of their users into paid subscribers, in order to become profitable.

How the gig economy hurts the small guy

Many online marketplaces that are facing the spectre of slowing growth and crashing valuations are sure to do what Sequoia advised—cut expenses and conserve cash.

Billionaire Amazon founder Jeff Bezos is not having it easy in India

Dubai: Jeff Bezos met top film stars, Shahrukh Khan being among them, and made promises of spending $1 billion in India to take the Amazon story forward. But it is who he did not meet during his high-wattage visit to India that could have far-reaching consequences for Amazon — in what has become an exceptionally […]