The Festive Fever!🎇

Sale Season Sizzles, Diwali Gifts, Kareen's K-Beauty

Oct 16, 2023

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D2C Pulse is a newsletter written by the team at GlobalBees, curating happenings in the direct-to-consumer ecosystem of India.

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After a month-long gap, we couldn't resist returning to the scene – and just in time for the most electrifying season of the year! The festivities have erupted with a thunderous applause, setting the stage for a fiery cheer.

On one hand, we've witnessed the incredible showdown between Flipkart's Big Billion Days and Amazon's The Great Indian Festival, bringing forth a shopping extravaganza that's bound to leave anyone awestruck. And on the other, the crazy cheers of cricket fans as the World Cup matches unfold, adding an extra layer of excitement to the season.

🗞️Marketplace Updates

E-Commerce Extravaganza: E-commerce platforms in India have kicked off the festive season with a bang, raking in an impressive Gross Merchandise Value (GMV) of INR 29,000 Crores in just the first four days of their sales events that began on October 7. This reflects a year-on-year growth of 16%, as per a report by Redseer Strategy Consultants.
In the first 4 days, the average daily sales was 6X higher than regular days. This surge in sales was particularly pronounced for high-value items like mobiles, electronics, and large appliances, where the average order value saw a significant increase compared to the previous year.
Amazon and Flipkart, witnessed staggering customer visits. Amazon recorded more than 9.5 Crore visits during the early access day and the first day of the Great Indian Festival 2023 sale, while Flipkart logged 9.1 Crore user visits during the initial 48 hours of its sale.
Furthermore, over 80% of customers during the first 48 hours of Amazon's festive sale hailed from non-metro cities. Flipkart, on the other hand, received more than 60% of its total orders from these regions during the early access and the first day of The Big Billion Day sale.

As the festive season unfolds, categories like fashion, beauty, personal care, and home are expected to witness a surge in interest during the latter half of the first week of the festive sale. With these impressive figures, Indian e-commerce platforms are set to make this festive season one for the record books.

A Revolution: WestBridge Capital has acquired a stake in Meeshothrough a secondary transaction. Meesho's existing investors, including Sequoia Capital, SoftBank, and Prosus, have exited their positions, while WestBridge Capital now holds a substantial stake in the company. Meesho, founded in 2015, enables individuals to start their own businesses online by selling products on various social media platforms. This strategic investment by WestBridge Capital underscores the growing influence of social commerce in India's e-commerce landscape and its potential for further expansion.

According to reports, Nykaa must maintain its advertising investments to safeguard its market share against competitors like Purplle. Analysts at Kotak Institutional Equities suggest that a strong focus on advertising is essential as it keeps Nykaa top-of-mind among consumers in the highly competitive beauty and e-commerce sector. Nykaa's recent IPO success(?) has boosted its finances, and sustaining advertising efforts will be pivotal in defending its position against rivals like Purplle and others vying for a slice of the Indian beauty market.
Moglix’s gross scale spiked 83% to Rs 4,500 Cr in FY23. The company’s gross revenue spiked to Rs 4,595 crore in FY23 from Rs 2,517 crore in FY22, according to its annual financial report filed by the holding company in Singapore. Income from the sale of industrial supplies was a major source of income for Moglix while commission on online sales, income from technology, and support services also contributed to the company’s topline.
Shiprocket raised $11 Mn from McKinsey at flat valuation. Shiprocket’s operating revenue grew around 71% to Rs 611 crore in FY22. The firm posted a loss of Rs 93 crore in FY22 against a profit of Rs 12.4 crore during FY21. It’s yet to report FY23 numbers.
ONDC saw retail orders — which mostly comprise food, beverages, and grocery — hit a fresh peak of 53,000, driven by an array of deals and discounts introduced for the festive season. The figure also includes a small number of electronics, home decor, and other items that are counted in the retail transaction category. With the government-backed e-commerce network raising its incentive levels for platforms from October 3, industry sources believe players like Magicpin, Paytm, Ola, and PhonePe have got an extra mileage to step on the accelerator to push sales during the festive season that also overlaps with the ongoing ICC Cricket World Cup.

🍕D2C Bites

The Ambitious Leap: Cred is making a significant foray into the mutual funds space by acquiring Kuvera, a wealth management platform.
This acquisition aims to enhance Cred's portfolio of financial services and provide its users with a seamless experience for investing in mutual funds. Kuvera's innovative tools and technology will likely strengthen Cred's position as a comprehensive financial platform. With this strategic move, Cred continues to diversify its offerings, aligning with the evolving needs of its user base and expanding its footprint in India's competitive fintech landscape.

Eské, a Mumbai-based D2C lifestyle brand that offers premium handbags, briefcases and accessories has raised a total of USD 1.5 million. Having been a key supplier for international luxury brands, Eské was launched five years ago, and has seen tremendous traction in a short span of time.
K-Beauty Sensation: Kareena Kapoor Khan has joined forces with the co-founders of Sugar Cosmetics to introduce a new K-Beauty brand called Quench Botanics. This collaboration aims to tap into the growing demand for Korean skincare and beauty products in the Indian market. Quench Botanics is set to offer a range of clean and sustainable skincare solutions, capitalizing on Kareena Kapoor Khan's star power and the beauty expertise of Sugar Cosmetics' founders. This venture represents another notable entry in the expanding beauty and wellness sector in India, as celebrities increasingly venture into the entrepreneurial world to cater to evolving consumer preferences.

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