Online Sales To Surge By 25 pc This Festive Season: Assocham
The upcoming festive season in India, beginning October 1 is likely to register record-breaking sales, revenues for ecommerce companies. According to the latest survey by trade body, the Associated Chambers of Commerce and Industry of India (Assocham), the festive spend by online shoppers is likely to increase by 25 per cent to Rs. 25,000 crore this year from Rs. 20,000 crore last year.
The survey was conducted by interviewing 2,500 working professionals in the age group of 25-40 years from diverse sectors from automobiles to BFSI, IT and media and entertainment, among others. The survey however maintained that the stock and inventory management needed to meet the sharp surge in demand over the short period of time.
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“This is expected to be the busiest festive season for e-commerce companies as Indian consumers are likely to spend up to Rs. 25,000 crore and more as against over Rs. 20,000 crore spent in the festive season last year, thereby, registering about 25 per cent growth,” D S Rawat, Secretary-General of Assocham, while releasing the findings of the chamber’s survey-cum-analysis told Business Line.
The survey was carried out across 10 Indian cities including Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Indore, Jaipur, Kolkata, Lucknow and Mumbai in order to ascertain customers’ shopping plans for the upcoming festive season.
The respondents said apparel, appliances, cosmetics, jewellery, perfumes, shoes and electronic items such as mobiles, laptops, televisions and portable media players are the most preferred product categories this festive season.
“Besides introduction of premium services such as free shipping and extended return period, the increased use of high-speed Internet on smartphones is likely to boost online shopping this festive season and help e-tailers register profits after a dull first half of this year,” he added.
The survey conducted by the Assocham Social Development Foundation stated about 60 per cent of the respondents said they were ready with their shopping lists and would prefer online shopping over standing long hours in store aisles, while most of the remaining opted for shopping at physical brick and mortar outlets.
Study researchers also suggested that companies should be equipped to meet the various challenges related to logistics and influx of visitors. They should also avoid losing customers due to technical issues by taking precautionary measures in adnvance such as investing in a larger server or cloud hosting service.
E-commerce players must also ensure that stock levels are high, and that delivery dates are met as customers would be particular about these details during the festive season. That apart the ecommerce business will be prosper in India in the next three months, the study concluded.
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