NEW DELHI: Sales of mid-range mobile phones priced over Rs 15,000 on ecommerce platforms doubled in the May-August period from pre-Covid-19 levels on account of new launches, while fashion and lifestyle products slumped 53% in August, according to market research firm Nielsen.
In the fashion category, products priced at less than Rs 500 accounted for 40% of the orders, down from Rs 1,000 earlier, as shoppers cut spending, Nielsen said.
There was a 26% increase in sales of electronics and home appliances through ecommerce channels in the months from May to August, as the economy opened up, compared with the pre-Covid-19 period of December to February.
Overall ecommerce sales in August stood at 71% of the pre-Covid-19 level, Nielsen said. Consumers were cautious and generally scouted for deals, said Nielsen.
Average spending by each shopper increased 17% in July from levels in December, January and February, while the average order value climbed 14%. The average number of items purchased rose 23%, although the frequency of shopping remained the same on ecommerce platforms.
Mobiles and accessories accounted for 48% of the value of overall ecommerce sales, followed by fashion at 18%, appliances at 17% and FMCG at 12%, according to the Nielsen report. “There is a visible sign of consumer either downgrading to more affordable offerings or shifting towards value-for-money large packs,” said Nielsen. The share of private labels in modern trade has gone up and regional entities are performing better than their national rivals, indicating consumers are now looking for more affordable options, it added.
While there was a significant increase in the number of sellers entering the health and hygiene segments, there were fewer entrants in the salty snacks, chocolates and beauty – skincare, lipstick and fragrances – categories in the past few months.
With the increase in home cooking, ketchup, jams, cheese and milk powder gained prominence.
During the lockdown, FMCG consumption was the hardest hit in the bigger cities and the impact was the least in the villages, Nielsen said.