During the initial week of the festive season sales, Meesho, backed by SoftBank, surpassed Amazon to claim the second position, boasting larger order volumes. The sales, conducted from September 22-30, witnessed a total gross merchandise value (GMV) of $5.7 billion, marking a 27% increase compared to the same period last year. Despite this, Meesho’s average order value (AOV) was smaller than that of Amazon and Flipkart, preventing a substantial contribution to the overall GMV, according to analysts at Redseer.
In terms of order volumes, the Flipkart group secured the top position with a 49% market share, followed by Meesho with 21%. However, Amazon’s share in terms of order volumes was not separately calculated by Redseer. Flipkart maintained its market leadership with a 62% share of the GMV, driven by larger order values, while Amazon held a 26% share. Other players like Meesho, Nykaa, JioMart, and similar platforms collectively accounted for the remaining 12% of the total GMV during the week.
Meesho’s lower AOV, approximately 60-65% less than Amazon’s or Flipkart’s, contributed to its distinctive position in the market. The platform benefited from increased sales in Tier-2 cities and beyond, where Amazon’s presence is comparatively lower. Notably, Meesho focused on fashion products, while Flipkart also sold smartphones, impacting the comparison.
Meesho’s logistics strategy involved using third-party logistics players, contributing to the creation of approximately 0.25 million jobs for logistics partners during the festive season. The platform experienced a surge in app downloads, reaching 30.6 million in September. Additionally, Meesho highlighted the significant contribution of sales from Tier-2 and beyond cities.
Other notable trends during the festive season included mobile phones and the fashion category leading the GMV, with a 41% and 20% share, respectively. Mobile phone sales experienced a sevenfold increase compared to regular business days, while the fashion segment reported a threefold jump. JioMart, primarily known for groceries, expanded into other categories, recording a twofold increase over regular business days.
In conclusion, Meesho’s strategic focus on Tier-2 cities, coupled with its distinct product offerings and logistics approach, contributed to its impressive performance during the festive season sales.