Festive Season: Observations And Predictions

The shopping trends in India has been gaining momentum and growing exponentially. If we take into account the statistics of this year, the first half was rather moderate. The market was looking at the e-commerce industry to top last year’s statistics this festive season, and it didn’t disappoint. It was observed that the low purchasing power of the first half was a preparatory period of the Indian masses. They were saving up and lurking for the right opportunity to buy their desired products. Their prime concern was to derive the value for their money. So overall there was no change in demand for products, however there was a change in shopping pattern due to slow economy. The e-commerce giants like Amazon and Flipkart kick off the festive season with massive sales and enticing offers.

 

What does the statistics say?

To put in perspective the scale of consumerism, we can compare the smartphone sales from last year to the current one. Last year, smartphone sales alone constituted over 55% of the entire trading. The prediction for 2019 stated that it will be difficult for the industry to stay on this number or surpass it, given the slow economy. But to everyone’s surprise, the share still stayed at 55% this year too. This came as a huge relief to the sellers, cementing the fact despite the slow start, this year can still provide them with good revenue. The industry gross merchandise volume (GMV) for the festive days in 2018 had jumped 77% year-on-year, in comparison to the overall annual growth at around 35%. About 80% of the sales was expected to occur in the first five days. The period in which Flipkart and Amazon will hold their Big Billion Days and Great Indian Festival events, respectively. 

 

The Golden Quarter: 

The festive season dawns from September in India, and it lasts till December. There is Ganpati, Onam, Dussehra, Diwali, Christmas and New Year chronologically. The festive season has been so promising over the years that many companies set aside almost 40% of their advertising budget only for festive season. Contrary to popular belief, the tier two and tier three cities have shown a lot of enthusiasm to participate in online shopping. October-end garnered around Rs 39,000 crore ($6 billion) in Gross Merchandise Value (GMV) sales. There is a 30% increase in combined festive sales of Amazon and Flipkart in terms of GMV in the year 2019 as compared to what they generated in 2018.

 

What does Taglr say?

The consumer behaviour and statistics as per Taglr is no different. As a platform with plenty of major brands and retailers, our shoppers showed similar enthusiasm. Taglr provides a platform to the retailers who may or may not be on the discovery platform. The mogul of e-commerce like flipkart, individual websites and offline retailers are at par while showcasing their products on Taglr. We saw an increase in traffic of approximately 20% and 53% increase in shoppers who were redirected to e-commerce sites during the festive season.

Similar to the broader market, during Diwali 2019 Taglr also witnessed 51% increase in conversions for electronics e-commerce stores, and 85% increase in conversion for fashion ecommerce stores. According to Taglr the top sales generating products during the festive season were : 

Product Traffic Conversion 
Mobiles 3x increase 2x increase
Televisions 1.5x increase 4x increase
Laptops 1.9x increase 2.5x increase

Taglr data also suggests that there was 2-4 times increase in traffic for products like watches, speakers and sunglasses – possibly because consumers surfed for these products for gifting items. Taglr observed an average 66% increase in the number of visitors  who come through online advertisements during the Diwali 2019 . 

Consumers are resisting spending cash during the ongoing festive season with the preference dropping from 19% last year to 9% this year. Mobile Wallets and Net Banking modes of payment also show a downward trend with 5% and 3% respectively this season as compared to 8% and 6% respectively last year. Aside from the market trends let’s also consider the factors that nudge these numbers ahead. 

 

Gifting: 

The reason festive season has so much to offer is due to the embodiment of gifting culture. The two major draws are during Diwali and Christmas. But, there is a gradual shift from traditional Indian to western. This jump from ethnic to party wear is not only limited to apparels but also to accessories as well. 

 

Self care: 

With New year comes resolutions. Our study predicts that there is a possibility of a slight jump in categories like athleisure and self care products. There is a habit of indulging into fitness regimes and self pampering.

 

Wedding Season:

The wedding season is not confined to a single year. It begins around October and lasts till February in the following year. It is important to prioritize the products as per their demands. The wedding market is huge in India and it is a multi million dollar industry. 

 

Conclusion: 

The goal should be simple. As the web traffic increases in the festive season, keep in mind that the more visible you are, more shoppers you attract. Visibility is the key, your offers will not come to rescue you, it will be the traffic you generate and convert. You want more people to buy your products, you generate more awareness about them. There are plenty of products that are not at the mercy of festive season like formal apparels. As a seller you have the entire year as an open market. Taglr helps you in creating the visibility and awareness that you require on and off season. There is a simple and effective method to showcase products hasslefree. So strategize and place your products according to the demand of the festivals and you may see a steady growth across the year. 

 

Article Sources : 

https://www.livemint.com/

https://www.businesstoday.in/current/corporate/ecommerce-festive-sales-amazon-flipkart-snapdeal-sell-goods-worth-rs-19000-crore-redseer-consulting-report/story/383626.html

https://www.businesstoday.in/current/corporate/flipkart-vs-amazon-festive-sales-e-commerce-firms-claim-highest-sales-ever-most-orders-from-small-towns/story/383117.html

https://economictimes.indiatimes.com/industry/services/retail/this-festive-season-shopping-offline-to-get-as-cheap-as-online/articleshow/71511201.cms?from=mdr

 https://www.indianretailer.com/article/whats-hot/trends/Top-Five-Trends-of-Festive-Sale-2019.a6376/

https://tech.economictimes.indiatimes.com/news/internet/etailers-target-4-8b-sales-this-festive-season/71302384

https://economictimes.indiatimes.com/corporate/festival-season-to-see-a-surge-in-ad-spends/articleshow/70694421.cms?from=mdr

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