This year, festive sales had to fight two major challenges, lower-income and fear of maximizing exposure to the external environment, this report highlights the two major and takeaways.
Against the odds, this year people shopped as many products as they had in 2019, according to data by Increff, an inventory fulfillment platform. However, the difference was that people bought similar quantities at lower prices leading to lower bill values.
This signifies the inclination towards discounted items. Due to the lowered economy and salary-cuts, unwillingness to spend more is a much prominent sentiment. But the data also reflects less fear of exposure to the external environments amongst Indians.
Products with more than 50% discount were hot favorites
According to the Increff report, over 80% of the festive Sale in 2020 contributed towards the demand for items with more than 50% discount. Though the products within the discount 50% to 60% saw a reduction in sales as compared to 2019, the sales increased significantly on items above the discount of 60%. The report suggests that higher discounts by the sellers can also be a reason for the decrease in average selling price.
Shoppers in megacities led 25% of festive sale
Top cities, i.e., Delhi, Bangalore, Mumbai, Hyderabad, and Pune have driven a quarter of the overall festive sales this year. While the sales from Delhi, Mumbai, and Kolkata remain the same as the previous year. Bangalore, Hyderabad, and Pune saw a dip in sales. When compared to 2019, the Increff report highlighted a 6% overall reduction in the contribution of top 5 Cities in 2020.