E-commerce major Flipkart clocked the largest number of shoppers spending more than Rs 5,000 among the top five e-tailing platforms with a 29% share during January-March 2017, according to a research report by RedSeer Consulting.

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An Analysis of Ecommerce Space for Q1 2017
E-commerce major Flipkart clocked the largest number of shoppers spending more than Rs 5,000
among the top five e-tailing platforms with a 29% share during January-March 2017, according
to a research report by RedSeer Consulting.
#DigitalErra Thought Corner
Since, Q3 2016 (July-September), Flipkart has seen the maximum number of big spender shop
on its site largely on back of its offering in high-value categories such as smartphones, consumer
electronics and large appliances.
Amazon followed with 22% of shoppers total purchases on the platform billed above Rs 5,000 in
Q1 2017. The gap in the high value transactions of the two leading horizontal players is due to
the different areas of focus by the two companies.
Unlike Flipkart, Amazon holds strong play in low-ticket items such as FMCG and daily supplies.
In Q1 2017, Snapdeal followed with 16% high-spending shoppers, Jabong with 9% and Myntra
with 5%.
Average Order Value
“High AOVs (average order value) are validation of investing best of customer on e-tailing
portals. Going forward it should be a big lever for the growth of e-tailing industry,” Anil Kumar,
CEO of RedSeer Consulting said.

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The October-December quarter of festive seasons saw the surge in the % of high value
transactions for all the players. Flipkart scaled the peak of 33% of shoppers clocking value of
more than R5,000 followed by Amazon with 28% and Snapdeal with 23%.
Meanwhile, fashion companies Jabong and Myntra are also doing well. In July 2016, Myntra
acquired Jabong in a $70-million-deal. According to the report, Myntra was ahead of Jabong
with 5% share against Jabong’s 3% in July-September quarter post the acquisition. But in the
following quarters — October-December and January-March sales at Jabong picked up with the
company garnering more high value transaction during the period.
What’s next
With a $400-billion market capitalisation, Amazon has no shortage of money and can match
Flipkart discount for discount, said Mahesh Murthy, co-founder of Seedfund, an early-stage
venture capital fund.
He adds, “Battles online are not won on discounts and marketing spends, but on clearly
differentiated offerings that consumers evangelise by word of mouth.”
While Flipkart and Snapdeal continue to push smartphones, appliances, and apparel, with a focus
on the number of transactions, Amazon also entered daily needs grocery market and pushed
entertainment with Amazon Prime.
Prime membership bundles all its offering under one roof through which Amazon is aiming to
create a habit among its users.In a recent event, Amazon said its Prime members accounted for
35 percent of purchases.
While the data on the number of users who shop on either of the platforms is not available,
Amazon’s monthly page views were 198 million in April compared to Flipkart’s 107 million and
Snapdeal’s 28 million, according to digital market intelligence company SimilarWeb.
Conclusion
A merger with Snapdeal will help Flipkart bring on board Japan’s SoftBank Group Corp. Its
founder Masayoshi Son financed a similar battle in China by backing Alibaba Group Holding
Ltd. to first defeat eBay Inc. and then fend off Amazon.
Going forward, the strongest growth in online penetration is expected to be recorded by fashion
category with strong purchases by customers in Tier2+ cities who come online to avail the
greater selection in this category.
(References: Financial Express, Red Seer Consulting report)
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