The first week of the 2023 festive season sale, which wrapped up on 15 October, witnessed online platforms registering a GMV (gross merchandise value) of approximately Rs 47,000 crore.
This marks a 19% growth compared to the first week of the 2022 festive season sale, as highlighted in a recent report by Redseer Strategy Consultants.
Key players and market share
According to Redseer's analysis, the Flipkart Group, which encompasses Flipkart, Myntra, and Shopsy, maintained its dominant position during the first week of the 2023 festive season sale. The group's market share in GMV terms expanded further from the previous year, reaching 63%.
Amazon followed closely in terms of market share. In terms of volume, Meesho secured the second spot, with its market share rising to 25% of the total orders, a jump from 21% during the same period in 2022.
Consumer preferences and buying trends
Interestingly, eight of the nine sale days this year fell during the 'shradh' period, in contrast to four days in 2022. This shift influenced consumers to lean towards "essential upgrades" this festive season, particularly in high ASP categories like mobiles, electronics, and large appliances.
These categories, known for their timely deals and easy financing options, collectively contributed to 67% of the GMV during the first week. The only 'non-shradh' day in the first week witnessed a 36% YoY growth, marking the second-highest single-day growth this festive season.
Consumer insights and spending patterns
Abhishek Tandon, Engagement Manager at Redseer, commented on the distinct consumer behaviours observed during the week.
He noted, "Two distinct consumer profiles emerged during the first week. One segment is willing to spend on premium products at the right prices, while the other is shopping more frequently but focusing on value-for-money products."
He further added that Indian consumers, despite being cautious with discretionary spending, are ready to shell out if they perceive value or attractive deals.
Financing and premiumisation trends
The 'pre-book and price-lock' feature, introduced for the first time by platforms, coupled with easy financing options, seemed to drive the theme of premiumisation in high ASP categories.
Redseer's survey indicated that 30% of consumers who shopped in these categories during the first week availed of the easily accessible financing options for their purchases.