Notwithstanding sluggish economic conditions, consumers in India are expected to splurge about $8 billion (Rs 52,000 crore) on online shopping during this festive season, beginning with Navratras, Durga Puja, Dussehra, Diwali and Christmas, said an Assocham study. This translates into 40-45 percent sales increase for e-commerce players.
The industry body said that there would be more than a fivefold increase in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewelry, gifts, footwear available at cheaper rates and delivered at the doorstep.
It is much cheaper to operate online as costs are lower than brick and mortar stores. At least in big cities, the e-commerce sales are expected to have an adverse impact on sales and footfalls at bricks-and-mortar stores selling products like mobile phones, fashion wears etc.
Other products being sold aggressively through online platforms include electronics, designer furniture, home decorations, jewelry and footwear. The big brands are in tie up with popular e-commerce retailers and hard selling through full page advertisements, internet and television.
Being wooed by heavy discounts and combo offers and with the options of payment like cash on delivery available, the rapidly emerging net-savvy generation of Indian consumers are enjoying doing their shopping, virtually from their desk top in office, lap tops at home or even android based phones.
One of the driving factors for the online shopping is the age profile of the consumers who are young between 15-35 years. "The customer is connected 24x7 through their smart phones, tablets and other mobile devices, which is leading to a gradual evolution of e-commerce into mobile commerce. Also, there is an issue of convenience which also leads to impulsive buying", Assocham Secretary General D S Rawat said.
As per the Assocham study, online shopping pattern has been changing in tier-I and tier-II towns, where the broadband internet connectivity has already penetrated. The most popular among the e-commerce websites - Snapdeal, Myntra, Flipkart, Amazon, Jabong etc. have been doling out massive price cuts or discounts on purchase of popular brands over almost all categories of products.
There is increased pressure on e-commerce majors Snapdeal and Flipkart to generate bumper sales this Diwali after revenue growth at these companies slowed in the first quarter.
E-commerce major Snapdeal has begun its Diwali sale with 'Electronics Monday' today. Offers up to 70 percent are being provided in various categories including clothes, footwear, electronics, luggage and others.
Flipkart intends to launch its mega-sale bonanza for five days from October 13 after a memorable 'Big Billion Day' sale last year. Amazon will also launch the five-day 'The Great Indian Festival Sale' coinciding with the Flipkart event tomorrow.
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