Ecommerce sales up by 24% in Q2 

According to a report by Unicommerce, the e-commerce sales volumes increased by about 24% in the April to June quarter. While high-value products have accelerated the growth in online retail sales, the sales of low-value items have remained sluggish. 

E-commerce sales volumes climbed up during the April-June period in 2023. According to a report by Unicommerce, the e-commerce sales volumes increased by about 24% in the April to June quarter. 

The report highlighted that during the June quarter sales volume in health and pharma, eyewear, and fashion & accessories grew by over 47%, 30%, and 24%, respectively. 

The smartphones segment which accounts for about one-third of the wider electronics segment in e-commerce, declined by 20% in sales volumes between January and June this year on a year-on-year (YoY) basis. 

Mr. Neil Shah, Vice President of Research at Counterpoint, informed, “Inflationary and recessionary pressures are making consumers withhold purchases till the second half of the year, when festival discounts will kick in, especially in the segment costing between Rs. 8,000 and Rs. 12,000.” He further said, “Brands like Xiaomi, Realme, and others have been facing this over the last two quarters at least.”

In the research, it was found that high-value products have been accelerating the growth in online retail. However, sales of low-value items have been slowing down.

The research highlighted, “In fashion and accessories, for example, products priced below Rs 500 are selling less while those priced higher are doing well. This has been the case with smartphones as well, and it continues. It has to be seen how this trend pans out over the rest of the year.’’

It has also been noted in the research that increased sales of second-hand phones and the availability of financing options have enabled some mass-market buyers to ‘upgrade’ to high-priced devices.