E-commerce space grew 36% in Q4 2020, says Unicommerce-Kearney report
The Covid-19 pandemic helped the e-commerce segment register a significant uptick in demand in 2020. Tier 2 and Tier 3 cities also drove the growth.
The e-commerce space posted a significant uptick in demand in 2020 due to the Covid-19 pandemic. According to a Unicommerce-Kearney report, the last quarter of 2020 saw a growth of 36% and 30% year-over-year in terms of order volume and GMV respectively. The average order value declined by 5% in Q4 2020 as compared to the same period last year, added the report.
The ‘Q4-2020 -E-commerce Trends Report' reveals the e-commerce industry reported 26% order volume growth in Q4 2019 via-a-vis Q4 2018. The spike in volume growth of Q4 2020 indicates the significant demand for e-commerce platforms. The report noted that the Covid-19 pandemic and related lockdowns led to a massive change in consumer habits with many new users and sellers joining the digital platforms.
The offline retail continues to have a single-digit growth, whereas the e-commerce sector is growing at a CAGR of more than 20%, according to the report.
Another highlight of the e-commerce boom in 2020 was the growth of new segments. For instance, personal care, Beauty and Wellness (PCB&W) as well as FMCG & Healthcare (F&H) were the biggest beneficiaries and saw volumes grow by 95% and 46% YOY respectively, the report added.
It further said that FMCG & Healthcare (F&H) was one of the fastest-growing categories as its volume growth stood at 94% in the fourth quarter of 2020.
“This has helped the category to achieve the highest AOV growth of over 33% in the quarter. The category has been able to record strong growth with the increased size of the consumer basket as consumers seek larger packs/ more SKUs. Major FMCG companies in India are now looking to ramp up e-commerce efforts with many adopting online-only or online-first for select brands and products,” the report said.
- Electronics segment registered a 12% YoY growth in AOV in addition to 27% YoY growth in volumes as consumers moved to the high-end products. The segment also drives the highest share of the e-commerce value.
- Fashion and accessories continue to be the largest segment by volume. It reported 37% YOY volume growth, but AOV declined by 7% YOY in Q4-2020 compared to the same period last year.
- During the quarter in review, tier 2 and tier 3 cities accounted for a whopping 90% YOY incremental volume and value growth