- Myntra and Facebook-backed Meesho sold 60 orders per second or more than 5 million products in total in one day of their sale.
- The Consumer Confidence Survey, conducted by India’s central bank, is still in the negative territory†
- However, the impact of this diminished sentiment isn’t that bad, especially on discretionary spending.
India’s e-commerce titans – Amazon, Flipkart and Myntra – are all currently hosting their semi-annual sales. It may sound like a bad time as customer sentiment is low due to inflation, layoffs, rising interest rates and more.
But the e-commerce market behaves very differently from the stock markets. Both Myntra and Facebook-backed Meesho — the latest entrant among the biggest e-commerce players — sold 60 orders every second, or a total of more than 5 million products in one day of their sale.
For Myntra, it was the first day of the End of Reason sale held between June 11 and 16, and for Meesho it was their one-day sale held a week earlier.
Amazon and Flipkart have not yet disclosed the performance of their sales.
*While inflation and high oil prices affect everyone, consumer confidence is not low everywhere. There are many categories in discretionary spending that still have high turnover. Anything with relatively high quality and reasonable prices seems to be doing well,” also noted N Chandramouli, founder of brand intelligence company TRA Research.
According to several experts with whom https://gotechbusiness.com/ spoke, the right product at the right price matters.
The consumer confidence survey is still in
the negative territory† The Reserve Bank of India (RBI) consumer confidence index improved slightly to 75.9 in May from 71.7 in March, but is still negative.
However, the impact of this diminished sentiment isn’t that bad, especially on discretionary spending.
“Consumer sentiment is not affected as negatively as people think,” Shrenik Gandhi, co-founder and CEO of digital marketing agency White Rivers Media, told https://gotechbusiness.com/ India. He noted that in order to attract customers, companies need to come up with the right products and services at the right time and at the right price.
A white space for brands
Shahan Sud, an investment banker turned VC, explained that the combination of the attention recession and the impending recession will create a white space for brands that will allow them to build their inventory management unit (SKU) that targets consumers seeking are towards a “value buy, but one that keeps up with the fashion trends of the season”.
An earlier report from ICICI Securities, published earlier this week, also noted that discretionary companies such as retail, QSRs and jewelry are set to perform well for the time being. The low-ticket segment of staples would be the biggest impact of negative sentiment due to their reliance on the bottom tiers for incremental volumes.
Beauty, durable goods will be the biggest sellers in 2022
Madhur Singhal, managing partner and CEO of Praxis Global Alliance, noted that there will be a significant increase in direct-to-consumer (D2C) brands selling beauty, home, kitchen, utilities and durable goods. In addition, electronics and durable goods will also show good sales this year.
He believes it could be much better than it is now. He noted that sales will be soft for a few months before picking up. Contrary to popular belief, he noted that festive sales growth could be muted compared to last year as the trends of revenge buying and pent-up demand have dissipated.
“I think this year’s holiday season will be much better than the previous two years, with consumer spending rising,” Chandramouli said, disputing Singhal’s view.
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