Amazon, Flipkart, and other e-commerce players could hit $7 billion in Diwali sales this year

• According to a Redseer report, e-commerce gross merchandising volume could hit $7 billion this year during the festive season, a big jump from last year’s $3.8 billion.
• With the festive season coming up, consumers are expected to splurge in a ‘revenge buying’ spree.
• With over 160 million online shoppers, the report also expects total e-commerce sales for 2020 to hit $38 billion.

Diwali marks the time when houses across India don a new look. Families indulge in shopping, not only for the family but also for gifts for friends. So, it’s not without reason that India’s retailing industry has its hopes high and expects the festive season to make up for the tepid sales so far this year.

And with people's preference to stay home due to the rising number of coronavirus cases, e-commerce is going to win big this year.

According to a Redseer report, e-commerce gross merchandising volume could hit $7 billion this year during the festive season, a big jump from $3.8 billion last year. With Amazon’s Great Indian shopping festival and Flipkart’s Big Billion Days sale coming up, the report expects these festive sale events to garner $4 billion in sales.

Due to the coronavirus pandemic, India’s retail industry has been adversely affected, and the majority of the shopping has been for the ‘essentials’ category, but with the festive season coming up, consumers are likely to splurge in a ‘revenge buying’ spree.

A rise in e-commerce sales was noticeable when the non-essential category opened up during the unlock phases. Earlier, in its earnings report, Walmart has said that since the reopening of lockdown, GMV (Gross Merchandising Volume) at Flipkart has exceeded pre-COVID-19 levels.

The Redseer report lists five reasons for the doubling sales for online players this year:

• COVID driven massive online adoption of Bharat customers
• Rise of new shopping models owing to changing customer demographic
• Strong nationalist sentiment
• Massively hit organized retail
• Rise of Jio

While malls across the country are also hoping for a festive revival, the second bout of coronavirus cases in major cities like Delhi could act as a barrier. Shoppers may prefer to splurge via online shopping.

Almost every other e-commerce player from Amazon, Flipkart to Snapdeal, has been betting on Tier II and III markets - as the next growth boost will come from the ‘Bharat’ users. From vernacular offerings to set up last-mile delivery hubs, e-tailers have been stepping up their presence in small towns. And during this Diwali, that’s what could factor in for the rise in numbers.

With over 160 million online shoppers, the report also expects total e-commerce sales for 2020 to hit $38 billion.

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