MAM
E-commerce in India sees uptick of 77% between 2020 and 2021: Report
Mumbai: E-commerce in India has witnessed an uptick of 77 per cent between 2020 and 2021 with tier-2, tier-3 cities leading maximum transactions according to a report by conversation media platform Bobble AI.
While the tier-1 cities dominate the fashion festival figures, transactions in tier-2 cities like Jaipur, Guwahati, Lucknow, Kochi, Mysore, and Bhubaneswar are at an all-time high – up 82 per cent over the previous year, found the report based on over 50 million smartphone users’ (in 640+ Indian cities) data.
The findings also show that majority of consumers are between the ages of 26 and 35 accounting for 37 per cent, and between the ages of 18 and 25, accounting for 26 per cent with 72 per cent males and 28 per cent females.
Beauty and fashion lead e-ecom in India
Beauty e-commerce apps usage grew by 64 per cent, whereas fashion e-commerce grew by 368 per cent over the past year. The festive period has only led the two e-commerce domains to skyrocket, with at least two transactions completed by shopaholics during the fashion festivals.
Competition heating up with new players
As per the report, India’s fashion e-commerce industry has transformed from ‘Monopoly’ to ‘Ludo.’ Fashion giant Myntra faced tough competition from its competitive counterparts, Meesho, Ajio, and TataCliq. While almost 46 per cent of all transactions belonged to Myntra during the 2020 festive period, Ajio bagged around 69 per cent of all transactions in 2021. The share of Myntra’s active users, also using Meesho, Ajio, and TataCliq has also increased significantly, indicating how users are exploring multiple options this year.
The battle of the e-commerce legends, Amazon, and Flipkart is also worth noting, with Flipkart’s active user base rising 83 per cent in 2021 online shopping festival compared to Amazon’s 72 per cent. Despite the fact that Flipkart is dominating in terms of engagement metrics like search frequency and active sessions, Amazon is winning in terms of transactions, significantly less average session times.
Apart from fashion e-commerce, interesting insights have also emerged from the beauty e-commerce segment.
Leading players Nykaa and Purplle locked horns this festive season – and Purplle took a piece from Nykaa’s pie. In light of Nykaa’s IPO, let’s look at their market share against Purplle, Nykaa’s pure-play fashion e-commerce competitor. Purplle had a 70 per cent growth in active users in the 2021 shopping festival, compared to a 50 per cent increase for Nykaa. With 15 per cent common user base in 2020, Purplle is now standing at 17 per cent in 2021, as per the report.
Hypergrowth on the horizon
The festive season trends point towards healthy and fast-evolving competition in the e-commerce market, which bodes well for customers who are looking for high-quality products at affordable prices.
With the festive season coming to a close, it is exciting to anticipate how the competition will pan out in 2022. With India’s e-commerce market set to reach $120 billion by 2025, the future seems promising. Hypergrowth is definitely on the horizon for the segment, and according to Bobble AI’s findings, brands are poised to capture growth opportunities.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
