Ecommerce Growth Slows as Offline Sales Rebound

According to researchers and consumer goods manufacturers, sales at large retail chains, also known as modern trade, recovered to pre-pandemic levels in the January-June period due to low infection rates, an increase in consumer mobility, and the removal of all Covid curbs. In addition, eCommerce channel growth has slowed compared to the previous two years.

According to GfK India, a smartphone and electronics industry researcher, the contribution of organized retail increased by 1-4 percentage points from January to May compared to the same period last year across products such as smartphones, televisions, and large appliances.

According to GfK data, which tracks actual sales, key categories have grown by 34-49 percent in the overall offline channel, while organized retailers are growing at a faster rate of 65 percent for smartphones, 47 percent for TVs, and 55 percent for large appliances. According to industry executives, the offline channel growth rate was in the single digits during the same period last year.

Even for daily necessities and groceries, leading fast-moving consumer goods (FMCG) companies and retailers reported that sales growth and contribution of large chains have increased in recent months, while that of eCommerce channels has slowed.