Flipkart is on course to achieve around Rs 33,000-36,000 crore in gross merchandise value (GMV) during its ongoing festive season sale. The sale, which started on October 8, is projected to continue until Diwali in November, lasting for 40-45 days. Flipkart, owned by Walmart, has maintained its market leadership over rival Amazon India in recent years. The company began the second leg of its festive season sale on Sunday after a successful start to its flagship Big Billion Days sale in early October. These sales are structured in three stages to drive a significant portion of the total annual sales during this period.
The start of Flipkart’s sale cycle has been positive, and it is expected to hit a GMV of around $4-$4.5 billion, according to sources. This represents a 15-20% increase from the GMV recorded in 2022. GMV refers to the total value of goods sold on an online marketplace, and Flipkart earns a commission on each sale for offering its marketplace platform. Flipkart also generates revenue through other seller services like advertising.
The strong growth in Flipkart’s sales can be attributed to an uptick in demand for high-value items across categories, including premium smartphones, electronics, and appliances. This trend is confirmed by third-party logistics companies that have seen an increase in shipments of such products.
According to Datum Intelligence, a market research firm, the first week of festive season sales on ecommerce marketplaces saw an 18% growth in GMV to around $4 billion. The firm expects the overall GMV for the ecommerce industry to reach around $9 billion by the end of this year’s festive season. Flipkart’s GMV estimates align with market data and highlight the company’s strength in segments like smartphones, fashion, and appliances during this period.
The growth in Flipkart’s sales reflects a rising trend of “premiumisation” in both online and offline retail. While sales of low-value items have been sluggish, there has been a strong demand for high-value products. This trend indicates that a certain class of affluent users are driving overall sales, while the broader consumer base may not contribute as much due to income pressure and overall inflation.
Flipkart’s newly launched paid subscription programme VIP has also contributed to the company’s growth. Affluent users from top metros are spending more on the platform, particularly in businesses like Cleartrip for travel bookings. Flipkart VIP, which offers next-day delivery, was launched in metro cities like New Delhi, Bengaluru, and Mumbai just before the start of Big Billion Days.
Overall, Flipkart’s festive season sale is expected to significantly contribute to its total annual sales, further positioning it ahead of rival Amazon India.
