India’s biggest online retailers such as Hindustan Unilever and online-only e-commerce giant Indias Big 5 have both seen a surge in online sales since the start of the year.
As the festive season draws to a close, consumers are increasingly turning to online-based shops to stock up on essential goods and services, including essential ingredients and essential medicines, as well as more than 400 products that are not yet available in India.
In the last 12 months, Hindustani Unileves has sold more than $15 billion worth of goods online, according to market research firm Euromonitor.
Indias biggest online retailer, Priti International, has reported a 26% increase in sales, while Indias big online seller, Hindyabhayam, saw an 18% rise.
The online marketplace has seen a rise in sales due to increased demand from Indian consumers who are seeking more affordable goods, such as essential ingredients, as it has faced a slump in sales from domestic suppliers.
Indias largest online seller Hindyas brand of essential oils and cosmetics, Preeti International India, said in an email to The Hindu that its sales had increased by 18% in the last two months, citing an increase in demand from consumers.
Priti’s brand of cosmetics and essential oils has seen strong growth over the last year as it is known to be a premium brand in the Indian market.
According to a report by The Wall Street Journal, Pioti had sold $4 billion worth online by the end of last year.
Indiatimes said the online retailer has a turnover of about $9 billion and a market share of around 1%.
In the next few weeks, Pritzers brand of skincare products and essential products, P.R.P., is expected to sell over $100 million online, it added.
While Hindustans biggest online seller Indias e-retailers are not going bankrupt, they are not able to compete with other online sellers and will need to look for other ways to increase their sales, said Vijay Shrestha, co-founder of the online marketplace Indias Indian Shop.
“Online retailers are facing tough times, but we are also faced with the challenges of growth in the industry and a shortage of quality brands,” he added.
Preeti has already launched an online store for Pritivi Essential Oil, a brand that is the most widely used essential oil in India, and the online store is now able to sell nearly $20 million worth of products.
“The focus is on the Indian consumer who is facing challenges due to the shortage of essential ingredients like essential oils.
As the festive sales season gets underway, we are now able have the ability to deliver products in a cheaper price,” Pritipi told The Hindu.
While online retailers are often seen as the best option for the consumer, there are other sellers who are trying to take advantage of the trend.
Last year, online-retailing platform Flipkart acquired e-tailer Myntra for $500 million, with the aim of bringing in more revenue from online sellers.
However, Myntras sales have not yet been approved for listing in India’s market.
Shree Raju, the co-Founder and CEO of Indias second largest online-exclusive e-shopping platform, Indias Digital Shopping, said there is no shortage of online retailers in India because there are many online sellers with good customer service.
“There are also many online retailers with good product selection.
For example, there is a big selection of essential items, including basic products like shampoo, conditioner and toothpaste, along with many premium brands such as brand names such as Nadi, Pitar, Indys, and Indias Premium,” he told The Huffington Post India.
“It is a lot easier to get online sellers to sell online than to have a brick-and-mortar store.
If a retailer wants to grow, it should look to the online platform,” he said.
Shree added that the e-tailing platform, which is available in over 30 countries, has made a huge impact on India.
“It has opened a new opportunity for online sellers as they can sell online directly from their home or offices and get customers for free.
In fact, if a customer buys the product online, the seller gets a discount and the customer gets the product for free,” he pointed out.
Shri Ravi Kalyanakaran, cofounder of online e-store platform, Flipkarts India, told The Hindustanic that online retailers do not have to compete against the Indian marketplace in order to thrive.
“They can also grow by targeting Indian customers in order for them to make a profit from the sale of their products,” he explained.
Shra said that online-ex