AllianceBernstein has released a new report on India’s ecommerce market. According to the report, Walmart-owned Flipkart is leading India’s e-commerce segment with 48% market share. Softbank-backed Meesho has reportedly emerged as the fastest growing ecommerce platform in terms of user base in India. According to the report, Flipkart’s user base grew 21% year-on-year (YoY), Meesho grew at 32% while Amazon lagged at 13% user growth primarily. However, among all three Amazon has relatively premium offerings in its marketplace.
Flipkart: Leads the online shopping market in India
According to the report Flipkart tops the online shopping market in India, with close to 50% market share. The e-tailer is said to be growing faster than the industry in the country. “As of FY23, Flipkart was the market leader, with a 48% share in India eCommerce. Flipkart continues to grow faster than the industry… Mobile and apparel to be the largest categories for Flipkart with around 50% and 30% mix. Flipkart is estimated to hold 48% and 60% market share in the online smartphone and online fashion market respectively,” the report said.
Meesho: The leader in tier-2 and smaller cities
Meesho’s growth is in sync with the growth of ecommerce in tier-2 and smaller cities in India. The report attributed growth in Meesho’s market share primarily to its strategic focus Tier II and smaller cities due to its mass positioning, operating through a zero commission model. “Meesho is the fastest growing ecommerce platform in India with around 120 million average monthly active users (MAUs),” the report said.
Most products on the Meesho marketplace are unbranded. The report puts the number to as high as 95%. “In the last 12 months, Meesho’s order volume grew 43% YoY with revenue growth at 54% through healthy take rates, repeat customers are around 80%,” it said. The report said that Meesho’s around 80% of the sellers are retail business owners and about 95% of the selection on the platform is unbranded.
According to the report, current GMV (gross merchandise value) run rate of Meesho business is over $5 billion with around 50% GMV from apparel, BPC (beauty and personal care) is around 8-10% and home and kitchen contributing in the range of of around 8-10%.
“We expect Meesho to be the key gainer with over 48% downloads in Indian ecommerce and gain incremental market share,” the report said.
Amazon reportedly leads as preferred shopping destination
While as per AllianceBernstein analysis, Amazon is a laggard in terms of customer growth another separate report claims it to be the most-sought after ecommerce player. A Nielsen Media study, commissioned by Amazon India, in September had found Amazon India to be the most preferred online brand for the respondents across India.
Reliance Jio growing fast in fashion segment
In fashion ecommerce, Reliance Group-owned Ajio is said to be acquiring users at a fast pace. The e-tailer currently holds around 30% market share based on MAUs (monthly active users). However, Flipkart Group company Myntra continues to hold the highest market share in terms of active users with over 50% share.
“In December 2023, Myntra exhibited the highest growth rate amongst peers at 25%. A closer look at the business suggests that users on the app are not transacting as much as previous trends, Myntra’s GMV grew only 12% in FY 23 as compared to 35% in FY22,” the report said.
Blinkit leads among instant delivery platforms
Amongst e-grocery players, Blinkit continues to grow the fastest driven by maturity in the market. Zepto, which began its operations in April 2021, however lags as compared to Blinkit in terms of product offerings and reach, the report claims.
“As per our industry discussions, quick commerce is a 3 player structure in India with Blinkit as a market leader with nearly 40% share, Instamart at 37-39% and Zepto at around 20% share from a GMV perspective,” the report said.
Flipkart: Leads the online shopping market in India
According to the report Flipkart tops the online shopping market in India, with close to 50% market share. The e-tailer is said to be growing faster than the industry in the country. “As of FY23, Flipkart was the market leader, with a 48% share in India eCommerce. Flipkart continues to grow faster than the industry… Mobile and apparel to be the largest categories for Flipkart with around 50% and 30% mix. Flipkart is estimated to hold 48% and 60% market share in the online smartphone and online fashion market respectively,” the report said.
Meesho: The leader in tier-2 and smaller cities
Meesho’s growth is in sync with the growth of ecommerce in tier-2 and smaller cities in India. The report attributed growth in Meesho’s market share primarily to its strategic focus Tier II and smaller cities due to its mass positioning, operating through a zero commission model. “Meesho is the fastest growing ecommerce platform in India with around 120 million average monthly active users (MAUs),” the report said.
Most products on the Meesho marketplace are unbranded. The report puts the number to as high as 95%. “In the last 12 months, Meesho’s order volume grew 43% YoY with revenue growth at 54% through healthy take rates, repeat customers are around 80%,” it said. The report said that Meesho’s around 80% of the sellers are retail business owners and about 95% of the selection on the platform is unbranded.
According to the report, current GMV (gross merchandise value) run rate of Meesho business is over $5 billion with around 50% GMV from apparel, BPC (beauty and personal care) is around 8-10% and home and kitchen contributing in the range of of around 8-10%.
“We expect Meesho to be the key gainer with over 48% downloads in Indian ecommerce and gain incremental market share,” the report said.
Amazon reportedly leads as preferred shopping destination
While as per AllianceBernstein analysis, Amazon is a laggard in terms of customer growth another separate report claims it to be the most-sought after ecommerce player. A Nielsen Media study, commissioned by Amazon India, in September had found Amazon India to be the most preferred online brand for the respondents across India.
Reliance Jio growing fast in fashion segment
In fashion ecommerce, Reliance Group-owned Ajio is said to be acquiring users at a fast pace. The e-tailer currently holds around 30% market share based on MAUs (monthly active users). However, Flipkart Group company Myntra continues to hold the highest market share in terms of active users with over 50% share.
“In December 2023, Myntra exhibited the highest growth rate amongst peers at 25%. A closer look at the business suggests that users on the app are not transacting as much as previous trends, Myntra’s GMV grew only 12% in FY 23 as compared to 35% in FY22,” the report said.
Blinkit leads among instant delivery platforms
Amongst e-grocery players, Blinkit continues to grow the fastest driven by maturity in the market. Zepto, which began its operations in April 2021, however lags as compared to Blinkit in terms of product offerings and reach, the report claims.
“As per our industry discussions, quick commerce is a 3 player structure in India with Blinkit as a market leader with nearly 40% share, Instamart at 37-39% and Zepto at around 20% share from a GMV perspective,” the report said.
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