Consumers are expected to splurge about USD 8 billion (Rs 52,000 crore) on online shopping this festive season, translating into 40-45% sales increase for e-commerce players, says an Assocham study.
"Wooed by heavy discounts and combo offers, consumers are expected to splurge about USD 8 billion (Rs 52,000 crore) during this season, beginning with Navratras, Durga Puja, Dussehra, Diwali and Christmas," the industry chamber said. The merchandise being sold aggressively through online platforms include mobile phones, electronics, designer furniture, home decorations, clothes, accessories, jewellery, and footwear.
It added that economic slowdown notwithstanding, online shopping marts are going aggressive about marketing their merchandise, expecting to rake in 40-45% more in sales during this festive season as compared to last year. According to the chamber, consumers spent Rs 30,000 crore in last year's festive season.
"The customer is connected 24x7 through smartphones, tablets and other mobile devices which is leading to a gradual evolution of e-commerce into mobile commerce. "Also, there is an issue of convenience which also leads to impulsive buying," Assocham Secretary General D S Rawat said.
The study said there would be increase in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewellery, gifts, footwear being available at a cheaper rates and delivered at the doorstep. "As the economy is not in pink of health, the e-commerce sales, at least in big cities, would be at the cost of brick and mortar bazaars, especially with regard to products like mobile phones, fashion wears etc," it added.
Assocham said online shopping pattern has been changing in tier-I and tier-II towns, where broadband Internet connectivity has already penetrated. "The most popular among e-commerce websites -- Snapdeal, Myntra, Flipkart, Amazon, Jabong etc -- have been doling out massive price cuts or discounts on purchase of popular brands of apparels, footwear, electronic goods, coinciding with the upcoming festive month," it said. One of the driving factors for the online shopping is the age profile of the consumers who are young (between 15-35 years), it added.