India’s E-tailing has reached $60 billion GMV in FY2023 with a steady 22% annual growth showing strong performance on most metrics, said Redseer Strategy Consultants on May 18.
E-tailing, which experienced steep growth during COVID-19, has slowly been losing momentum post-pandemic. However, the growth rate continues to remain healthy, and the industry is very well placed when taking into account a host of other important metrics, according to Redseer.
Despite slower annual growth of 22% in FY23, e-tailing today is 2.5x pre-COVID levels and the shopper base is maturing. As per the firm, 31% of yearly shoppers are now monthly shoppers as well, well up from 23% in FY21.
Mrigank Gutgutia, Partner at Redseer said, “Despite losing momentum, e-tailing today is 2.5x of pre-COVID levels and is performing much better than overall retail consumption, which has been tepid in the recent quarters due to inflation concerns.”
The maturing user base was driving 1.2x better monetization owing to the changed category mix— with fashion now the largest online category with 27% GMV share, it said.
With 210 million annual shoppers in FY23, ads monetisation contributed $1.2 billion in revenue for Indian e-tailers in FY23 and was growing at 37% y-o-y will drive strong growth going forward as well, it further said.
Flipkart Group has been resilient and maintained its market share at 48% in FY23 despite growing competition recently and is significantly increasing 1.6x faster than the industry in JFM23 quarters, as per Redseer analysis.
On trends, Redseer observed, the growth pattern in FY23 (and likely going forward as well) is different wherein the ‘regular shoppers’ I.e., the monthly user base is now larger than ever before. Monthly shopper base (MTU) which stood at ~65 Mn in FY23 is now 31% of the annual e-tailing shopper base— the same metric which was just 23% in pre-pandemic era.
For all the latest business News Click Here
