India's online shopping market: Which is better? Flipkart, Amazon or Meesho
Flipkart tops the online shopping market in India with almost 50% market share, the report said.
Walmart-owned Flipkart is leading India's e-commerce segment with 48% market share, AllianceBernstein said in a new report. Softbank-backed Meesho has emerged as the fastest growing ecommerce platform in terms of users in India while Flipkart's users grew 21% year-on-year (YoY). Meesho grew at 32% while Amazon lagged at 13% user growth primarily, the report claimed.
What the report said on Flipkart?
Flipkart tops the online shopping market in India with almost 50% market share. The e-tailer is growing faster than the industry in the country, the report said, adding, “As of FY23, Flipkart was the market leader, with a 48% 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% and 30% mix. Flipkart is estimated to hold 48% and 60% market share in the online smartphone and online fashion market respectively."
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Meesho is leading in tier-2 and smaller cities
Meesho is growing faster in tier-2 and smaller cities in India due to its mass positioning, operating through a zero commission model, the report said, continuing, “Meesho is the fastest growing ecommerce platform in India with around 120 million average monthly active users (MAUs). In the last 12 months, Meesho's order volume grew 43% YoY with revenue growth at 54% through healthy take rates, repeat customers are around 80%."
“We expect Meesho to be the key gainer with over 48% downloads in Indian ecommerce and gain incremental market share,” it predicted.
Amazon is a preferred shopping destination
A Nielsen Media study in September found Amazon India to be the most preferred online brand for the respondents across India.
What about others?
In fashion ecommerce, Reliance Group-owned Ajio is said to be acquiring users at a fast pace and holds around 30% market share.
“In December 2023, Myntra exhibited the highest growth rate amongst peers at 25%. 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% in FY 23 as compared to 35% in FY22,” the report said.
