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Flipkart leads e-comm mkt with 48% share, Meesho fastest growing platform

The report said that Meesho's around 80 per cent of the sellers are retail business owners and about 95 per cent of the selection on the platform is unbranded

Flipkart

Photo: Bloomberg

Press Trust of India New Delhi

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Walmart group firm Flipkart continues to dominate the e-commerce segment with 48 per cent market share while Softbank-backed Meesho has emerged as the fastest growing e-commerce platform in terms of user base in India, a latest report by AllianceBernstein said.

According to the report, Flipkart's user base grew 21 per cent year-on-year (YoY), Meesho accelerated at 32 per cent while Amazon lagged at 13 per cent user growth primarily due to relative premium offerings as compared to peers.

" As of FY23, Flipkart was the market leader, with a 48 per cent share in India eCommerce. Flipkart continues to grow faster than the industry... Mobile and apparel to be the largest categories for Flipkart with around 50 per cent and 30 per cent mix. Flipkart is estimated to hold 48 per cent and 60 per cent market share in online smartphone and online fashion market respectively," the report said.

 

The report attributed growth in Meesho's market share primarily to its strategic focus Tier 2 and smaller cities due to its mass positioning, operating through a zero commission model.

"In the last 12 months, Meesho's order volume grew 43 per cent YoY with revenue growth at 54 per cent through healthy take rates, repeat customers are around 80 per cent," it said.

The report said that Meesho's around 80 per cent of the sellers are retail business owners and about 95 per cent of the selection on the platform is unbranded.

"Meesho is the fastest growing e-commerce platform in India with around 120 million average monthly active users (MAUs)," the report said.

According to AllianceBernstein analysis, current GMV (gross merchandise value) run rate of Meesho business is over USD 5 billion with around 50 per cent GMV from apparel, BPC (beauty and personal care) is around 8-10 per cent and home and kitchen contributing in the range of of around 8-10 per cent.

"We expect Meesho to be the key gainer with over 48 per cent downloads in Indian eCommerce and gain incremental market share," the report said.

A Nielsen Media study, commissioned by Amazon India, in September had found Amazon India to be the most preferred online brand for the respondents across India.

In fashion e-commerce, Reliance owned Ajio has been acquiring users and currently holds around 30 per cent market share based on MAUs, however, Flipkart Group firm Myntra continues to hold the highest market share in terms of active users with over 50 per cent share.

"In December 2023, Myntra exhibited the highest growth rate amongst peers at 25 per cent. A closer look at the business suggests that users on the app are not transacting as much as previous trends, Myntra's GMV grew only 12 per cent in FY 23 as compared to 35 per cent in FY22," the report said.

Amongst e-grocery players, Blinkit continues to grow the fastest driven by maturity in the market.

Zepto, which began its operations in April 2021, however lags as compared to Blinkit in terms of product offerings and reach, the report said.

"As per our industry discussions, quick commerce is a 3 player structure in India with Blinkit as a market leader with nearly 40 per cent share, Instamart at 37-39 per cent and Zepto at around 20 per cent share from a GMV perspective," the report said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Jan 26 2024 | 10:55 AM IST

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