Premium Phones, More Sellers, and Increased Online Spending in Small Towns
The first round of holiday online sales are over and give an idea of what shoppers have been spending their money on. Flipkart and Snapdeal shared their numbers after their The Big Billion Days and Toofani Sale ended, with consumer outlook reflecting an improvement ahead of the festivals. Amazon is yet to release numbers, as the Indian festival’s big sale, which began earlier this month, is not yet over.
Flipkart sales highlight that more customers have purchased more expensive products. Twice as many high-end smartphones were sold compared to The Big Billion Days Sale in 2020. Of five smartphones sold, one was 5G compatible. Data shows that of all the high-end smartphones sold in this year’s sale, 41.78% were purchased by customers in Tier 3 cities.
A report from Deloitte Touche Tohmatsu India indicated that consumers in India are showing a positive intention to spend as Covid cases decrease and the pace of the vaccination campaign builds confidence.
Data from Snapdeal indicates an improving outlook for consumers as volume is up 98% from sales at the same time last year. Sales have tried to push online shopping amid the pandemic ahead of festivals.
The tendency for consumers in Tier 2 and Tier 3 cities to buy more is also shown in Snapdeal’s numbers. Almost 60% of the total orders placed in the Snapdeal Toofani sale were from Tier 3 cities. Tier 1 and 2 cities accounted for around 26% of the total orders. Buyers in metropolitan cities placed 14% of total orders.
“This year’s Big Billion Days sale has been imbued with a spirit of revival and growth as we have seen a resurgence in consumption and a marked shift towards online shopping,” said Nandita Sinha, vice -President (clients and growth) of Flipkart.
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Snapdeal said the value of orders from cities like Srinagar, Shimla, Alwar, Anantpur, Shimoga, Chital, Dhanbad, Imphal, Silchar and Tinsukia doubled in 2021 compared to 2020.
Orders placed from Tier 2 cities such as Patna, Meerut, Jodhpur, Rajkot and Jabalpur accounted for over 90% of total sales value last year.
There has been an increase in the number of sellers on Flipkart. Up to 55% of new sellers have posted products to sell online, compared to the same time last year.
Sales of smartwatches and fitness bracelets grew 100% on Flipkart. The company did not specify which wearable price bracket brought in the most sales. But it is more likely to be in the ??10,000 price range. Most of the new launches have been in this range over the past few months.
The availability of easier payment options, including bank credit card offerings, Flipkart Pay Later, no-fee EMIs, and the Flipkart Axis Bank co-branded credit card, has boosted sales of major household appliances.
In an indicator of the battles in the online shopping space, Amazon advanced its sale a few days after Flipkart announced the dates for The Big Billion Days Sale. Amazon Prime subscribers had access to some offers even earlier. The company has yet to announce the final day of the sale, although some banking offers for credit card offers, discounts and EMIs end on October 12.