Excited and encouraged by the tremendous business, traders across the country are now gearing up for wedding season sales scheduled to start on November 14, says CAIT
People visit a crowded Sarojini market to shop ahead of the Diwali festival, in New Delhi (Photo: PTI)
People thronged the markets for festival purchases and helped generate business worth Rs 1.25 trillion, which is a record trade figure in the past 10 years on the occasion of Diwali, said Confederation of All India Traders (CAIT).
CAIT, which represents about 70 million traders, said such massive shopping has ended the economic slowdown in business which persisted for the past two years. It has also awakened the spark of better business prospects among the business community in the near future.
“In this year’s Diwali festival, there is an estimated business of about Rs 1.25 lakh crore rupees in the entire country which is a record figure ever attained in the last decade,” said CAIT National President BC Bhartia and Secretary General Praveen Khandelwal. “In Delhi alone, this business was about Rs 25,000 crore.”
Bhartia and Khandelwal said that this time Chinese goods were not sold at all in the markets across the country and the special emphasis of the customers was on the purchase of Indian goods, due to which China suffered a direct loss of business worth more than Rs 50,000 crore.
The traditional items of the Diwali festival in demand were mostly earthen lamps, the colourful decor of earthen diyas, candles and paper mache lamps which gave a substantial business to small potters, craftsmen, handicraftsmen. Other products which were also in huge demand included sweets, dry fruits, footwear, watches, toys, home decor and fashion clothing.
Bhartia and Khandelwal said that this year, gold jewellery and silverware were purchased for more than Rs 9000 crore. This Diwali also brought a sizeable business to the tune of Rs 15,000 crore for packaging commodities. This Diwali has inspired traders across the country to adopt new ways of doing business in view of new opportunities and great potential for future business in India.
The first week of online festive sales in October, where various e-commerce firms participated, saw 23 per cent year-over-year sales growth in 2021. This means goods worth $4.6 billion (Rs 32,000 crore) have been sold online from brands and sellers during the festive sales, according to the latest report released by homegrown firm RedSeer Consulting.
RedSeer claimed that it has been seen that Flipkart Group emerged as the leader during the festive sales with an impressive 64 per cent market share.
Earlier, RedSeer Consulting had forecasted a sale of $4.8 billion in the first week of the festive sale. Further, the overall online shopper base grew by about 20 per cent compared to last year with Tier II contributing to about 61 per cent of all shoppers. Also, the overall GMV (gross merchandise value) per shopper has grown by 1.04X –indicating an inherent aspiration in the shopper.
E-commerce firms Amazon and Flipkart recently said the early trends of their festive sales event reflected increased participation from tier 2 and 3 cities. Amazon’s month-long Great Indian Festival 2021 and Flipkart’s The Big Billion Days started early in October.
Amazon recently said that its month-long Great Indian Festival (GIF) has seen the biggest ever shopping activity for its sellers and brand partners on Amazon.in, bringing services to millions of customers across the country. GIF started at midnight of October 2 with Prime Early Access and went live for all customers on October 3. Customers had access to the crores of product selection from sellers on Amazon including unique products from lakhs of Small and Medium Businesses (SMBs).
Customers from 99.7 per cent pin codes shopped during the month-long festive event. More customers shopped on Amazon than ever before, with 79 per cent of new customers coming from tier 2 and 3 towns like Ernakulam, Guntur, Krishna and Godavari. Customers experienced the Great Indian Festival in English, Hindi, Tamil, Telugu, Malayalam, and Kannada and the newly launched Bangla and Marathi along with voice shopping in Hindi and English. Local Shops on Amazon sellers clocked a 2x spike and sold over 10 products every minute.
As Bharat gets ready for 5G, more than 84 per cent of mid-range segment of smartphones bought on Amazon were 5G ready. More than one million customers purchased a smartphone on Amazon for the first time. About 1 in 6 smartphones and 1 out of 4 TVs sold during this time had Alexa Built in or worked with Alexa. Over 120 audio products were purchased every minute. Amazon’s voice assistant Alexa answered over 36 million requests during the Amazon Great Indian Festival 2021.
With the country’s online market projected to soar to $1 trillion, players such as Amazon, Walmart-owned Flipkart, Reliance’s JioMart and Tata Group, are betting big on e-commerce and are in fierce competition with each other.