E-commerce Platforms Thrive Amid Festive Shopping Surge
The festive shopping season is experiencing a remarkable upswing on e-commerce platforms, with order volumes escalating by 24% year-over-year and gross merchandise value (GMV) witnessing a 23% increase, as reported by Unicommerce.
This invigorating growth is propelled by heightened demand from smaller towns, an ascendant trend in quick commerce, and a burgeoning interest in premium purchases spanning categories from gold to furniture.
Marketplaces remain the cornerstone of overall sales, contributing 38% to total transactions, though order volume growth has only seen an 8% increase this year. Regionally, Tier II cities have exhibited the most robust growth at 28%, trailed by metropolitan areas at 24% and Tier III towns at 23%.
Notably, Tier II and Tier III cities collectively accounted for 55% of the total orders. The most significant contributors to this expansion were quick commerce platforms, which reported a staggering 120% year-on-year surge in order volumes.
These findings derive from over 150 million transactions processed on Unicommerce’s platform during the 25-day festive shopping period.
In the realm of quick commerce, the festive season revealed an astonishing gold rush. “We are witnessing a tenfold increase in the sale of gold and silver coins compared to last year,” stated Seshu Kumar Tirumala, Chief Buying and Merchandising Officer at BigBasket.
A category manager from another quick commerce entity noted, “Last year, during Diwali, we achieved sales of about Rs 50 lakh in gold and silver coins. This year, we have already surpassed Rs 7 crore in sales and anticipate crossing Rs 25 crore.”
Fashion retailers also capitalized on the festive fervor. Myntra, for instance, experienced heightened shopping enthusiasm across various regions, welcoming two million new customers to its platform.
The demand was fueled by Indian wear, kidswear, casual and sportswear, accessories, jewelry, international brands, and premium beauty products, according to Bharath Kumar BS, Senior Director of Revenue and Growth at Myntra.
Emerging non-metro cities such as Jaipur, Lucknow, Indore, Faridabad, and Coimbatore have established themselves as significant centers of demand, seeking Indian wear, wedding collections, beauty essentials, and sports apparel.
Kumar also mentioned that Myntra’s hyper-speed delivery service, M-Now, experienced a doubling in order volume during the festive sales compared to regular days.
Meanwhile, Amazon reported an extraordinary sixfold increase in furniture sales and a 500% rise in festive decorations. The e-commerce titan noted consumers gravitating toward premium products, with energy-efficient appliances increasing by 50%, fitness equipment by 20%, and gold jewelry sales nearly doubling.
“The growth in premium fashion is extraordinary, driven by luxury watches and gold and diamond jewelry, including lab-grown diamonds,” remarked Siddharth Bhagat, Director of Amazon Fashion and Beauty, India.
Current purchasing trends indicate that customers are acquiring fine jewelry starting at Rs 2,000 for silver pieces, extending up to Rs 40,000 for gold and diamond items.
“Over the past year, we have observed an increasing preference for 14-karat purity, with growth rates reaching 50% year-over-year for daily wear,” he added.
Source link: Financialexpress.com.
