Online will account for 25% of sales across major retail categories: Redseer Report
The firm came up with a list of 75 companies which account for nearly $15 billion worth of online sales, making them category leaders.
Thursday March 30, 2023,
3 min Read
In an ecommerce market expected to reach $163 billion by 2026, online sales will account for over 25% of the sales across major retail categories barring grocery, by 2026, according to consulting firm.
In its recent report titled Digital Disruptors, the firm came up with a list of 75 companies which account for nearly $15 billion worth of online sales, making them category leaders. The rankings were based on metrics including the online market share of the brands in their category, percentage sales from ecommerce, growth and performance on the ecommerce platforms, among others.
While digital first brand boAt led the electronics and appliances category, while BBK which owns smartphone brands like OnePlus, Oppo and Vivo came a close second, followed by computer and phone hardware manufacturer Asus.
“In the case of BBK, Oppo and Vivo have largely been offline brands. Asus is more of a youth-centric gaming laptop brand and hence its focus on online channels is higher,” said Mohit Rana, Partner at Redseer during the report launch. He added that Samsung India trailed at the number 10 as the sale of white goods such as refrigerators etc was still higher through offline channels. In case of Apple India which came in at 24, promoting the offline franchisee model over online sales seemed like a conscious decision on the brand’s part due to the high value of the product.
In the home and fashion category, Aditya Birla Fashion and Retail topped the list, followed by sports and casual wear brand Puma India and mattress brand Wakefit in the third spot. Grocery and personal care was dominated by large FMCG companies with Hindustan Unilever and L’Oreal India topping the list, followed by direct-to-consumer meat brand Licious.
The report tracked the performance of over 1000 companies and 2000 brands across 50 sectors to come up with the list.
“With digital-first brands accounting for ~25% of online sales and expanding their footprint in the offline market, traditional brands have newer challenges to conquer. Legacy companies need to focus on building digital capabilities and adopt an omnichannel approach to stay relevant in the digital age,” said Anil Kumar, CEO and Founder of Redseer in a statement issued by the company.
The report categorised the companies into four quadrants based on their adoption of digital strategy, with Tigers being the early movers, legacy players and dominant offline players being clubbed into Elephants. The other two categories included digital first companies under the Rabbits list leveraging ecommerce channels while Turtles included offline brands with slow adoption of online sales.
Edited by Akanksha Sarma