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Online Festive Sales See Lower AOVs and Increased EMI Purchases
Sentiment: NeutralHigh Priority
What Happened?
India's online festive sales are underwhelming this year, with rising prices affecting smartphone sales and a shift towards smaller-ticket items. The share of purchases through EMIs has significantly increased, especially for larger items.
Key points
- Smartphone sales have declined due to price hikes, affecting overall festive sales.
- The average order value (AOV) is 7-8% lower than last year, driven by purchases in lower-ticket categories.
- EMI purchases on Amazon have increased to 50% from 30% last year.
- Sales during the first four days dropped by 7-10% compared to last year.
- Consumers from tier 2 and 3 cities are increasingly participating in online shopping.
Key insights
- The increase in EMI usage indicates a shift towards affordability options among consumers.
- Smaller towns are becoming significant markets for online sales, reflecting changing consumer demographics.
- The decline in average order values suggests a focus on value-for-money purchases.
Why it matters
The shift in consumer purchasing behavior highlights the impact of inflation on spending during the festive season.
Entities
Amazon· CompanyFlipkart· CompanyIndia· Country
Source
Times of India
