Festive sales net huge pay-offs | Amazon, Flipkart eye record gross sales of Rs 39,000cr in October – Moneycontrol, Moneycontrol.com

Customers from Tier II and III cities led the growth, with mobile sales being the top contributor in the midst of a challenging macro environment

        

                                                              

                

India is expected to rake in an impressive Rs 39, 000 crore ($ 6 billion) in gross merchandise value (GVM) in October. This, after the September 29 – October 4 festive sales generated Rs 19, 000 crore ($ 3 billion) in online sales,reportsThe Economic Times.

The $ 3 billion GMV is impressive as the country is in the midst of a “challenging macro environment”, Anil Kumar, Founder, and CEO, RedSeer Consulting told ET, adding that this indicates that the online shopping segment remains bullish.

The RedSeer report found that the festive buoyancy was mostly seen among customers in Tier II and III cities, with year-on-year growth for the period at (percent.)

Flipkart said more than 50 percent of its shoppers were from small cities and town, while Tier III cities alone saw 100 percent growth in sales from last year, the report added.

Among sale categories, mobile phones led the pack, contributing 55 percent of the GMV. On the whole, consumer electronics, smartphones, fashion and large appliances drew large customer spend despite the slowdown.

e-commerce giants Amazon and Flipkart together netted 90 percent market share during the six-day festive period and are expected to dominate during October as well, the article quotes the research firm as saying.

Between the two, however, Walmart-owned Flipkart (including Myntra and Jabong ) registered 60 – 62 percent gross GMV, it said. It added that the mobile sales, backed by strong pricing, higher EMI options and more choices were the key contributors.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.