Republic Day Had A Lukewarm Response With A 12.72% Increase In Orders
Gurugram/ February 15: Despite the recent celebration of Valentine’s Day, which typically sees a surge in consumer spending, the Republic Day sales event witnessed a modest 12.72% increase in orders for Direct to Consumer (D2C) brands compared to the preceding week, according to a report by GoKwik, India’s leading eCommerce enabler.
Chirag Taneja, Co-Founder and CEO of GoKwik, suggested that the subdued growth could be attributed to various factors, including the extended festive season sales in 2023 and macroeconomic challenges such as high-interest rates and layoffs. However, Taneja remains optimistic about potential growth in consumption in the coming months.
A significant shift was noted in the sales trend, with the Beauty & Personal Care (BPC) segment emerging as the top contributor, experiencing a notable 19.89% surge in orders during the Republic Day sale period.
Tier 3 cities played a significant role in driving orders, comprising nearly half of all sales. These markets, known for their cost-sensitive consumer base, also availed almost double the discounts compared to Tier 1 and 2 cities, particularly in the BPC category.
D2C brand websites continue to gain popularity among consumers in Tier 3 and beyond cities, reflecting a notable shift in consumer behavior. Despite slower consumer demand in 2023, many brands have witnessed significant growth through their D2C channels, especially in competitive categories like BPC and Fashion.
The preference for cash on delivery (COD) remained strong in smaller towns, accounting for three-quarters of transactions during the Republic Day sale period. Conversely, Tier 1 and 2 cities showed a higher inclination towards prepaid orders, with Maharashtra and Uttar Pradesh leading in terms of order volumes.
A unique trend observed during the sale period was the increased preference for gift cards and premium memberships, particularly in the BPC category, indicating a growing demand for flexible gifting options and exclusive memberships in the online shopping ecosystem.
GoKwik, which hosts over 1200 eCommerce brands in its network, including Lenskart, Neemans, Man Matters, Purplle, and Shoppers Stop, continues to facilitate online sales across various categories.
