96%, yes that’s how accurate were our festive sales predictions
The Online Festive Sales of 2021 saw 23% YoY sales growth in 2021
With ~40 Million people coming from Tier II+ cities, this festive season was dictated by affordability schemes and discounts. As a result, the online shopper base grew by ~20% with an improved 1.04X GMV per shopper.
In the first week, online e-commerce clock ~$ 4.6 billion in sales and yes our estimates were 96% accurate.
Mobiles and appliances remained strong this year driven by new launches, and affordability factors related to discounts, bank offers, and smart upgrade plans of brands.
No wonder, Rs 68 crore of smartphones per hour were sold during the festive week.
Let’s take a look at key metrics that makes this online festive sale stand out.
1. This year, the overall online shopper base grew by ~20% compared to last year with Tier II contributing to ~61% of all shoppers
Online shoppers continues to show up during festive sales largely enabled by various affordability schemes and quick delivery timelines where eCommerce platforms were able to shave an average of 5hrs on delivery timelines to customers.
2. With marginal increase in GMV per shopper at 1.04X along with growing tier II customer share indicates inherent aspirations of ‘Bharat’
Festive period sales have largely become a tier II phenomenon. With marginal increase in GMV per user, tier II customers get more aspirational in their purchases as compared to last year.
3. Increased buyer base hasn’t impacted the category mix. It is still mobile heavy, with the resurgence of fashion after a quiet 2020
After a poor showing during last year’s festive, customer demand for fashion was back this year with affordable models and new platforms targeting Tier II users. Mobile shows strong demand with Rs 68 crore of mobiles purchased every hour during the festive sale across platforms during the festive sales!
Demand for other categories like home furnishings, home decor, and furnishings have been subdued during the festive season this year.
4. Overall, the Online Festive Sales of 2021 saw 23% YoY sales growth in 2021, inline with our predictions
~$4.6 billion (INR 32,000 crore) of goods have been sold online from brands and sellers during the first week of festive sales. Earlier, RedSeer Consulting had forecasted a sale of $4.8 billion in the first week of the festive sale.
The festive sales this year proved that brands and sellers selling online have reason to be bullish about the future of sales online – with increased adoption in Tier II+ cities and newer customers coming online for the first time. The marginal increase in per shopper GMV also holds significance to imply the aspiration and trust that new shoppers are ready to put in online shopping.