From Financialexpress · Anees Hussain · · 1m 20s
Festive sales face discount squeeze
E-commerce platforms must offer deeper discounts to match last year's festive prices as product costs rise.
In brief
E-commerce platforms must offer deeper discounts to match last year's festive prices as product costs rise. Online festive sales are expected to grow 25-29% this year but through higher volumes and cheaper products, not deeper discounts. Originally reported by Financialexpress.
Online festive sales growth expected
Online festive sales are likely to grow strongly this year but through higher volumes and cheaper products rather than deep price cuts.
Average selling prices rise
Average selling prices across top seven e-commerce categories are now above last year's October festive sale levels.
Price declines needed for last year's levels
Platforms would need to offer deeper discounts to bring prices back to last year's festive levels: laptops 29%, footwear 12%, ACs 10%, smartphones 9%, clothing 5% and washing machines 4%.
GST cuts last year boosted prices
Last year's festive season benefited from GST cuts that reduced prices by about 7.8% before discounts.
Higher input costs this year
Higher input costs, freight expenses following the West Asia conflict and a weaker rupee have pushed up product prices this year.
Smartphone sales growth slows
Datum expects festive smartphone sales to grow just 6% this year, against 26% last year, as higher prices and limited consumer spending power constrain demand.
The key point
Online festive sales are expected to grow 25-29% this year but through higher volumes and cheaper products, not deeper discounts.
