Amazon (AMZN), Walmart-owned Flipkart, and other e-tailers have achieved record sales of $3 billion in this year’s pre-Diwali festival sale.
According to an October 9 Bloomberg report, Redseer Consulting’s survey showed that online retailers like Amazon and Flipkart saw a 30% year-over-year rise in their sales totaling $3 billion in the six-day festival season from September 29 to October 4.
During these dates, Amazon launched its Great Indian Festival, and Walmart’s (WMT) Flipkart launched its Big Billion Days. To learn more, please read 10 Days Left until Amazon’s Great Indian Festival. Redseer’s report also showed that Amazon’s sales rose 22% YoY, while Flipkart’s sales rose 58% YoY.
Anil Kumar, founder and CEO of Redseer Consulting, said, “The first wave of the festive sale event has seen record GMV (gross merchandise value) of almost $3 billion despite challenging macro environment, indicating that consumer sentiment on online shopping remains bullish.”
According to another Inc42’s October 8 report, Amazon accounted for 30% of the total sales in the six-day festival season. However, this was lower than the 31% share last year. Flipkart, along with Jabong and Myntra, accounted for 63% of the market share in the festival season. Other e-tailers such as Snapdeal accounted for the remaining market share.
Amazon declined to comment, particularly with respect to what it called “speculative reports that lack robust and credible methodology.”
In an emailed statement, Amazon’s spokesperson continued, “During the Great Indian Festival, Amazon led with the highest share of transacting customers at 51 percent, order share of 42 percent and value share of 45 percent across all marketplaces in India according to Nielsen’s E-Analytics.”
India’s e-commerce space is heating up
The online retail space is heating up in India, with retailers racing for a piece of the Diwali sales. Indian e-commerce sales are being powered primarily by Tier 2 cities. For example, Snapdeal recorded 52% growth during its eight-day festival sale from September 29 to October 8.
According to an October 7 Business Today report, “Snapdeal said the increase in volumes from smaller cities was a pan-India trend.” The greatest amount of e-commerce activity occurred in cities such as Vijayawada, Surat, and Nagpur, with orders quadrupling over 2018.
According to news agency PTI, Snapdeal stated, “Snapdeal concluded its first Diwali sale of 2019 with record orders received, showing a massive growth of 52 per cent over last Diwali volumes. Given Snapdeal’s focus and leadership in the Bharat-focused value merchandise, nine out of every ten orders received on Snapdeal were from non-metro towns across India.”
Amazon’s stock performance
The news that Amazon is lagging in the Indian e-commerce industry could impact its stock, which is already under pressure.
Amazon stock has fallen 1.8% so far in October. This slide follows a 2.3% fall in September, led by a possible antitrust investigation and allegations of search results tampering. However, new product launches and climate change initiatives, including an order of 100,000 electric trucks from Rivian, supported the stock.
Now, all eyes are on Amazon’s upcoming third-quarter earnings. Wall Street analysts expect Amazon’s earnings to fall 21% YoY in the third quarter.
Peers: Performance and expectation
Among Amazon’s peers, Facebook (FB), Alphabet (GOOGL) (GOOG), and Microsoft (MSFT) saw their shares fall 0.2%, 2.5%, and 2.4%, respectively, month-to-date. However, Apple (AAPL) stock has risen 0.2% so far in the month.
Analysts expect Apple and Google’s earnings to fall 3% and 5%, respectively, year-over-year in their upcoming earnings. However, they expect Facebook and Microsoft’s YoY earnings to rise 8% and 9%, respectively, in their next quarterly results.
To learn more about what tech stocks’ moving averages reflect, please read Tech Stocks’ Averages Pre-Earnings: AMZN, AAPL, MSFT.