Festival glow to on-line buying

Here is a piece of information that will bring smile to all e-commerce sites. In the three weeks between Dussehra and Diwali (October 13 and November 3), on-line shopping clocked a turnover of Rs 115 crore, more than double the amount clocked in the festive season last year.

What's more, this is about 10 per cent of the total quantum of the estimated revenue that on-line shopping generated this year. Last year's festive season witnessed an on-line sale of Rs 53 crore.

According to the Internet & Mobile Association of India (IAMAI), on-line sales clocked 8.1 lakh transactions in the three weeks, registering a 135 per cent increase in transactions from the last year's festive season shopping (3.45 lakh transactions). These transactions are only shopping and exclude travel-related transactions.

Last year, total on-line shopping revenue was to around Rs 570 crore with travel accounting for 63 per cent. This year, a highly-optimistic IAMAI expects the figure to more than double to Rs 1,180 crore with travel accounting for 58 per cent of the total volume of business.

Says Preeti Desai, president, IAMAI, "It has been a sparkling Diwali and Eid as e-commerce sales crossed Rs 115 crore in three weeks.

On-line retailers have consistently seen growing consumer interest in buying Diwali and Eid gifts on-line. We sold 61 per cent of gifts in the two weeks prior to Diwali."

The key reasons for the strong growth are a better choice of products, the ever-expanding range of unique and unusual gift ideas offered, and the rising consumer confidence in shopping on the Internet.

Approximately 4.15 lakh customers used the Net for festival shopping this year, with the average transaction value being Rs 1,420.

The prices ranged from Re 1 (for auctions) to Rs 1.4 lakh. Consumer electronics "" digital cameras, mobile phones and accessories, DVD players and microwaves "" topped the Diwali shopping list of consumers in most major cities.

Sweets, chocolates, dry fruits and flower hampers, apparel jewellery, accessories, crackers and educational toys did well this year compared with the last year.

The most active on-line shopping days were noted as five days before Diwali and Eid. Almost all websites offered 24-hour express delivery for "last minute shoppers" on specific categories. Data revealed that this Diwali, shoppers spent more time in searching for and comparing products, with maximum shopping orders being placed between 6 pm and 10 pm.

eBay, the leading on-line market place, ran special promotions and contests to cater to the growing base of unique visitors during the festival season. "eBay has witnessed a 15 per cent growth in the number of on-line shoppers during the festive season," says Deepa Thomas, eBay India spokesperson.

Thomas attributes the on-line sales growth to on-line shoppers maturing and due to the increased trust in shopping on-line. In the past, many casual Internet users were found to have made their first ever on-line purchase during Diwali days.

According to Pankaj Chandra, business head - ecommerce, Sify, the site's on-line sale has grown 100 per cent during the festive period this year.

"A lot of non-resident Indians bought gifts on-line for their friends and relations in India. Consumer electronics and mobile phones were the main driver of sales for Sify during this festival period," he adds.

On-line shopping sites are waiting for the next wave of ecommerce. They are confident that 'younger super Internet consumers', who use the Internet in almost every facet of their lives, will push Internet sales even further.