E-tailing industry size to swell; may clock biggest quarterly sales in Q2 FY18
The e-tailing industry is on track to record its biggest quarterly sale ever in Q2 FY18. This is estimated to push the industry size up a notch.
- E-tailers to witness 45% YoY growth in Q2 FY18.
- Festive season sales generated $1.5 billion in just five days.
- The e-tailing industry was estimated to be $14.5 billion industry in 2016.
Festive season sales that recently culminated in record sales for Flipkart and Amazon have proven to push the e-tailing industry to new heights. E-tailers are estimated to witness 45% year on year growth in the quarter July-September, a report by RedSeer research report said on Monday.
“Driven by a very strong e-tailing festive sales in Sep’17, with $ 1.5 billion of sales generated over 5 days, e-tailers are likely to see 45% y-o-y growth in Q3 CY17,” the report said.
The e-tailing industry was estimated to be $14.5 billion industry in 2016.
“E-tailers on track to record their biggest quarter ever in Q3 CY17- which should push industry size to over $17 billion for CY17 as a whole,” the report said.
Image Source: RedSeer Report
“Which should put industry on track to grow 20% y-o-y for the whole of CY17- a marked improved from the slowdown recorded in CY16,” the report added.
The five day sale by Amazon and Flipkart generated Rs 9,000 crore, an earlier report by RedSeer said.
During the sale Flipkart took over 58% gross market share of the $1.5 billion sales revenue. This was higher than last year’s GMS which was only 50% for Flipkart.
Amazon however declined its share of GMS to 26% from 32% last year, the report said.
“Driven by their sharp advertising, robust offers and flawless execution, e-tailers have managed to largely match their pre-sales expectations and deliver the biggest sale period ever for e-tailing industry. The high-quality experience of all stakeholders involved in this event indicates the growing maturity of the e-tailing sector and sets up a strong base for enabling robust growth for the sector in the upcoming quarters,” RedSeer analysts said.