Robust Orders During Diwali Period Amidst Easing Ecommerce Demand
Brands are experiencing significant order volumes on quick commerce platforms during the Diwali period, attributed largely to last-minute holiday shopping.
Despite a noticeable deceleration in demand across the wider ecommerce sector over the preceding week, around 70% of the anticipated Rs 22,000-25,000 crore gross merchandise value (GMV) for online sales during the final week of festive sales, concluding on Bahidooj (Thursday), has already been achieved, as revealed by ecommerce consultancy Datum Intelligence.
Analysts posit that the sector is poised to meet GMV forecasts that reflect total sales in online marketplaces.
The final segment of festive sales is predominantly influenced by quick-commerce platforms, as consumers favor ultra-fast delivery options for impulsive purchases made on crucial festive days.
Numerous direct-to-consumer brands have reported a three- to five-fold surge in quick commerce orders over the past week.
“We are observing heightened demand for gifting items, dry fruits, puja essentials, Diwali lights, and diyas via quick commerce,” stated Satish Meena, founder of Datum Intelligence.
“There was also an uptick in sales of gold and silver coins, alongside utensils during Dhanteras.”
In response to this surge, major platforms such as Blinkit, Instamart, and Zepto have rolled out festival-centric features, including waived delivery charges and exclusive religious offerings sourced from eminent locations like Ayodhya.
“Consumers are increasingly seeking gifting experiences that are thoughtful, aesthetic, and meaningful,” remarked Sneh Jain, cofounder and managing director of The Baker’s Dozen.
The bakery startup, known for its sourdough bread, cakes, and cookies, noted nearly double the demand this Diwali compared to the prior year, with overall demand nearly tripling compared to normal days.
Quick commerce entities have dedicated specific sections on their applications for Diwali, featuring categories such as:
- Puja essentials
- Gifting
- Home decor
- Party supplies
- Chocolates
- Lights and diyas
- Fashion
- Electronics
- Sweets
- Dry fruits
“We have observed a five-fold year-over-year increase in quick commerce, significantly driven by our gifting collection. The Diwali gifting season has also seen a significant two-fold rise month-over-month,” commented Pradeep Krishnakumar, founder of fashion and lifestyle brand Zouk.
Furthermore, personal care brand Pilgrim witnessed a 30-40% sales uptick in comparison to regular days. Platforms have also augmented user engagement through interactive graphics, such as flying lanterns upon entering the Diwali page and animated diyas during purchases.
Notably, companies like Instamart, Blinkit, Zepto, BigBasket, Amazon, and Flipkart did not respond to queries from ET at the publication’s deadline.
Easing Sales in Ecommerce
While quick commerce has surged, broader ecommerce demand has diminished in the past week, as most substantial purchases were executed early in the sales period, according to analysts.
Meena noted that ecommerce orders during the Diwali period were confined to select categories, including mobiles, televisions, and fashion, coinciding with increased foot traffic in shopping malls and retail stores.
“We experienced a 40% decrease in sales this year in the week leading up to Diwali, compared to the prior year,” stated Sumit Kumar, founder and chief executive of Leopax Enterprises, an ecommerce retailer.
“Demand surged during the first week following the GST reduction, but subsequently, growth tapered off.”
Similarly, wellness brand Secret Alchemist reported a comparable experience in ecommerce sales. Although this period saw a growth of 2.5 times, the company had anticipated 3.0-3.5 times, as cofounder Akash Valia observed a preference among consumers for offline retail or D2C websites as well.
Ecommerce sales, which commenced on September 22, accounted for approximately 51% of the expected total festive sales during the initial week, generating about Rs 60,700 crore in GMV, as previously reported by ET.
Online marketplaces are projected to ship a record Rs 1.2 lakh crore worth of commodities this festive season, reflecting a 27% increase from the preceding year.
Source link: M.economictimes.com.
