Fes­ti­val frenzy: 50L mo­bile phones sold on­line in two days

Financial Chronicle - - FRONT PAGE - SANGEETHA G

Astag­ger­ing num­ber of 4.6 mil­lion mo­bile phone units worth $800 mil­lion have been sold in the first two days of the five-day fes­tive sea­son sales on the e-com­merce plat­form. Large ap­pli­ances is an­other cat­e­gory, which has re­ceived a ma­jor push in terms of sup­ply chain. In two days, 0.6 mil­lion units of large ap­pli­ances val­ued $170 mil­lion have been sold. In case of low­value fash­ion prod­ucts, the vol­umes are much higher. E-com­merce play­ers sold 10.3 mil­lion units of fash­ion prod­ucts worth $120 mil­lion. E-com­merce has al­ready gar­nered $1.5 bil­lion gross merchandise value and is well on track to touch $3 bil­lion in five days. Cash-back com­pa­nies are see­ing huge growth in trans­ac­tions. Mo­bile phones as a cat­e­gory dom­i­nated Day 1 of fes­ti­val sales and cash-back of­fers grew over 2,000 per cent. It was the top sell­ing cat­e­gory with up to 50 per cent dis­counts, ac­count­ing for over 40 per cent of all trans­ac­tions on Day 1. This growth is mainly driven by the mul­ti­tude of new smart­phone launches across dif­fer­ent price points in the on­line chan­nels this year as com­pared to last year. Chi­nese brands Xiaomi, OnePlus and Honor were huge con­trib­u­tors to sales.

Mo­bile phones were the top sell­ing prod­ucts for Ama­zon. OnePlus 6 (Mir­ror Black, 6GB RAM, 64GB stor­age), Redmi 6A (Black, 2GB RAM, 16GB stor­age), Redmi Y2 (Black, 3GB RAM, 32GB stor­age) and Redmi 6 Pro (Black, 3GB RAM, 32GB) were the top prod­ucts sold.

Ama­zon Fire TV Stick with voice re­mote stream­ing me­dia player is also a big hit among the buy­ers.

Flip­kart said on Thurs­day it sold 3 mil­lion mo­bile phones in a day, the high­est phones sold in a day glob­ally. Three head­phones have been sold ev­ery two sec­onds of the sale so far while it is sell­ing one lap­top ev­ery minute.

TVs and large ap­pli­ances saw ag­gres­sive pric­ing and cash-back of­fers grew by 1,500 per cent. The de­mand was high from Tier II, III and IV cities as a lot of these prod­ucts are not avail­able in those cities. In this cat­e­gory, TV saw the high­est spike in sales with up to 65 per cent dis­counts. Mi LED Smart TV 4A 108 cm (43), Sam­sung 6.2 kg fully-au­to­matic top load wash­ing ma­chine, LG 260 L 4 Star frost free dou­ble door re­frig­er­a­tor were some of the prod­ucts that were sell­ing like hot cakes.

Given the high gross mar­gins and up to 90 per cent dis­count, fash­ion as a cat­e­gory saw a spe­cial push by all web­sites. This re­sulted in over 1,000 per cent in­crease in or­ders placed via CashKaro on Day 1 of the fes­tive sales. US Polo Assn, men’s ca­sual trousers, Levi’s men’s skinny fit jeans and Ca­sio Ed­i­fice Chrono­graph Black Dial men’s watch were much in de­mand.

Flip­kart scored on ap­pli­ances as well. Mi LED Smart TV 4A 80 cm (32”), Mi 20000 mAh Power Bank (PLM06ZM, 2i) (White, Lithium Poly­mer), Sam­sung 253 L frost free dou­ble door 4 Star re­frig­er­a­tor, Sam­sung 6.2 kg fully au­to­matic top load wash­ing ma­chine grey and Midea 1 tonne 3 star BEE rat­ing 2018 in­verter AC were sold the most.

RedSeer Con­sult­ing has es­ti­mated e-com­merce to achieve $2.5 to $3 bil­lion gross merchandise value (GMV) dur­ing the five-day fes­tive sea­son sales in Oc­to­ber. The to­tal GMV will be dou­ble that of last year’s $1.5 bil­lion.

The in­dus­try is on track to reach $3 bil­lion by the end of the five-day fes­tive pe­riod as it has achieved $1.5 bil­lion in first 2.5 days of sale.

“Fes­tive sea­son sales have be­come a land­mark event for e-com­merce sales. The in­dus­try ac­quires a lot of new cus­tomers dur­ing the event. This year the in­dus­try has seen higher par­tic­i­pa­tion from smaller cities and we ex­pect the trend to con­tinue,” said Ujjwal Chaudhry, en­gage­ment man­ager, etail­ing, RedSeer.

Mean­while, there has been a huge de­mand for cash-back of­fers this time. Paytm is giv­ing away Rs 501 crore on cash-back of­fers.

Cash-back and coupons web­site CashKaro has seen huge growth in trans­ac­tions. “Over the last few years the in­crease in dis­counts and pro­mo­tional events run by e-tail­ing plat­forms has spurred a steep growth in shop­ping dur­ing the sea­son. All top re­tail­ers have un­veiled a bevy of of­fers to en­tice shop­pers in a bid to rope in buy­ers dur­ing this fes­tive sea­son. Mo­biles as a cat­e­gory con­tinue to be the most sought-af­ter seg­ment this year, com­pris­ing over 40 per cent of all trans­ac­tions,” said Ro­han Bhar­gava, co-founder of CashKaro.com.

“Shop­pers are spoilt for choice with every­thing from bud­get to pre­mium smart­phones avail­able at great dis­counts and with easy pay­ment op­tions. Elec­tron­ics and Large Ap­pli­ances fol­low suit given the in­cred­i­ble of­fers on these cat­e­gories. The ef­forts put in to build sup­ply chains, de­liv­ery net­works, free and speedy in­stal­la­tions as well as af­ter-sales ser­vices of high tick­eted items will have a clear im­pact on sales,” he added.

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