Online sales during the festive Diwali and Ramzan period
recorded sales of Rs115 crore a 117 per cent increase
from the Rs53 crore last year. This is amongst the latest
findings of a survey released by Internet & Mobile
Association of India (IAMAI) an industry trade organization
announced record Diwali sales.
highlights of the survey:
sales clocked across 8,10,000+ transactions in three
weeks delivered a 135 per cent increase in transactions
(number of transactions 2004-05 during festival season:
3,45,000), with the average value per transaction being
figures clearly show that online shopping has truly
come of age and consumers are keen to shop on the net.
Festival shopping is the prime time for multi-channel
retailers to attract new shoppers;
customer communication on products plus reduced shipping
costs and timely delivery has helped online marketers
to seize a slice of the Rs 115 crore sales;
purchases accounted for 10 per cent+ of total Indian
online sales estimated at Rs 1180 crores for this year
sans travel categories over a three week festive period.
to Preeti Desai, president, IAMAI "With ecommerce
revenues to cross Rs1180 crore for 2005-06 (IAMAI estimate)
and a growing internet user base currently at 32+ million
its been a sparkling Diwali and Eid in 2005-06 as ecommerce
sales crossed to a whopping Rs115 crore in three weeks
period. Online retailers have consistently seen growing
consumer interest in buying Diwali and Eid gifts online."
festival season Indians seem to be leaving their shopping
for the last minute and this year was no exception - 61
per cent of the gifts sold were in the two weeks prior
to Diwali, compared to 54 per cent per cent last year,
key reasons for the strong growth in the last two years
is because of a broad product selection and the ever-expanding
range of unique and unusual gift ideas offered as well
as increased consumer confidence in shopping on the internet.
adds, "We are fairly confident about the next wave
of ecommerce where the ''younger super internet consumers''
who use the internet in almost every facet of their life
will push internet sales to levels most people are not
likely to believe."
on Diwali and Eid 2005 online sales
reason for the rise in revenues is that consumers have
become more accustomed to purchasing online and look to
the internet to find comprehensive product information,
competitive prices and easy gift delivery across geographies
within India and outside.
4,15,000+ lakh Indians made purchases online this Diwali
across more than 8,10,000 transactions. Shoppers were
price and value conscious - Diwali shopping ranged from
as little at Re1 to Rs1,40,000. Consumers could choose
from a rich online catalogue of more than 3,60,000 products.
(Re1 products refer to auctions)
terms of products, different categories faced mixed
fortunes. As last years, consumer electronics, such
as digital cameras, mobile phones and accessories, DVD
players and microwaves topped Diwali shopping list of
consumers in most major cities. Followed by gifts (mithai,
chocolates, dry fruit and flower hampers), apparel,
jewellery and accessories (mainly watches) crackers
and educational toys
by improved site usability, wider product assortment,
better services, and competitive prices consumers spent
on multiple transactions online consumers had an appetite
for higher-end products boosting numbers of products
above Rs7,000. Gift certificates are still popular as
sent instantly via email
various member sites the most active online shopping
days were typically five days before Diwali and Eid
from October 28 to November 3, 2005, saw a dramatic
surge in transactions. Dhanteras and Bhau Beej on October
30 and November 3, respectively saw a lift in silver
and gold coins as well as jewellery
all websites offered 24-hour express delivery for ''last
minute shoppers" on specific categories.
Diwali shoppers spent more time in searching and comparing
products with maximum shopping orders being placed between
6pm to 10pm. interestingly consumers transacted from
office, home & cybercafé.
that retailers learnt from last festival sales included
back, prepare and stock up - this time they had the
right pulse regarding consumer demand and were prepared
for surge in order which usually comes in the last three
year retailers incentivised consumers with personalised
incentives to shop early.
kept consumers informed post the shopping process regarding
when they or their friends and family will receive products
and services bought online.
Diwali online retailers were well prepared for the 15
per cent new
or first time consumers who come back and buy through
the year and they simplified the buying process and
optimized delivery service to create a great first time