Amazon, Flipkart Rake In Rs. 19,000 Crore During Festive Sale; Flipkart Tops Chart

Amazon, Flipkart, and other online retailers recently hosted their festive sale for six-days and the scorecard is here. The festive sale held from September 29 to October 4 achieved a record sale of roughly Rs. 19,000 crores Gross Merchandise Value (GMV). Amazon and Flipkart have topped the list with 90 percent of the market share.

The recent online sale including the Amazon Great Indian Shopping Festival and the Flipkart Big Billion Days Sale, was predicted to reach a 60-65 percent GMV. An analysis report by Bengaluru-based research firm RedSeerConsultancy shows that the predicted sale was achieved. Amazon and Flipkart achieved a 30 percent year-on-year GMV during the short sale period, the report shows.

Flipkart Beats Amazon During Festive Sale

Flipkart's GMV was higher than Amazon, where Flipkart held 60-62 percent of GMV. If Flipkart's acquisitions Myntra and Jabong are also considered, Flipkart's GMV shoots up to 63 percent. On the other hand, Amazon's GMV year-on-year growth was 22 percent.

The RedSeer report states: "Strong performance across categories including mobiles was the key reason for Flipkart leadership. This was, in turn, enabled by strong value prices, high EMIs adoption and diverse selection across categories, all marketed aggressively to reach customers widely."

On the other hand, an Amazon spokesperson revealed to Gizbot that during "the Great Indian Festival (Sept 28 - October 4), Amazon led with the highest share of transacting customers at 51%, order share of 42% and value share of 45% across all marketplaces in India according to Nielsen's E-Analytics empaneled read of 190k digital users across 50+ cities."

More numbers were revealed by the Amazon representative, who disclosed that "with orders from 99.4% pin codes, over 65,000 sellers from 500+ cities receiving orders in just five days, customers from over 15,000 pin codes joining Prime and over 88% new customers coming from small towns, this event has been our biggest celebration ever."

Mobiles Top Sales Record

Amazon and Flipkart sold many mobile phones during the festive discounts. In fact, mobiles have made for over 55 percent of GMV during the festive sale. The report states that customers postponed their smartphone purchases till the sale for a strong 'value shopping'. Other categories include consumer electronics, fashion, and other large appliances.

Coming to the customers, the recent sale saw a large shift to online shopping especially among tier II and tier III cities. The report states that the 'value shopping' as advertised by online retailers was the driving factor for shoppers.

"The biggest theme of the festive season was 'value shopping' as indicated by a large chunk of customers from Tier 2+ cities who shopped online owing to wide selection supposed by affordability initiatives," the report said.

Both Amazon and Flipkart are kickstarting another sale in the coming week. The success of the first edition of the festive sale might ensure a hit for the upcoming sale as well. It is predicted that the fresh batch of discount offers will generate roughly Rs. 39,000 crores in online revenue.