The commencement of the third phase of the lockdown and the division of the country into red, orange, and green zones, a new definition has been given to different sectors in the economy. With the online channels being successful as ever, there is definitely more to come the way of the online retailers. The sector is now expecting a boost of up to 30%.
Lets’s have a look at some of the ways the online sector has changed:
The whole eCommerce sector– lockdown 3.0 has given a boost to the e-commerce sector and retailers are able to make up for the losses they incurred during the initial 40 days of the nationwide lockdown. The permission to deliver non-essential items in green and orange zones and partially operate in red zones have lent a considerable help to the sector, which is now looking forward to making the most of the opportunity. The business would take a significant hit as over 40 percent of the e-tailers are based in metropolitan cities which are currently in the red zone.
Fashion Ecommerce sector– the pandemic has taken a dig at the mango people’s pockets and in such times, fashion becomes the last on the priority list of the customers. The advent of the nationwide lockdown brought an enormous storm to the fashion industry with an unpredictable decline in demand. now, with the various measures being considered the industry is hoping to bounce- back but with caution.
Consumer Electronic Appliances – It’s good news for the online sellers of electronic appliances as order volume is increasing tremendously with the recovery rate of 35 percent in the first week of lockdown 3.0. It is also witnessing a jump of 5-7% in the average order size compared to the week before the lockdown was announced in March.
Online Eyewear – The eyewear comes under the essential category, therefore the online eyewear players continued to operate during the lockdown. However, the number of orders for eyewear decreased by over 60 percent, despite multiple promotions by leading online eyewear players. Presently, the order volume has increased by 70-75 percent as compared to a week before lockdown 3.0. This shows how consumers were not aware that eyewear products operate under the essential category.
Online Cosmetics – As some of the products from the cosmetics category come under the essential category, the majority of companies were partially operating during the first two phases of the lockdown. However, the companies experienced a decline of about 90 percent in the order volume. Furthermore, in the first week of lockdown 3.0, the cosmetics sector has not shown any significant signs of recovery, as the sector has only been able to regain 15-20 percent of its previous order volumes. It is expected that the sector might relatively take slightly longer to recover.
E-pharma and Online Grocery Sector – As both E-pharma and the online grocery sectors are considered vital for survival, they witnessed a surge of about 100% during the first two stages of lockdown, with the average order size increased by 20%. The third phase of the lockdown, however, did not do wonders for the sector, as due the customers have been stocking the goods from the beginning of the nationwide lockdown. With these two categories accounting for the most crucial part during these testing times, a massive boost in the current financial year is expected.
Commenting on the same, Kapil Makhija, CEO, Unicommerce said “The last 40 days had a major impact and change in people’s mindset when it came to online shopping. Even though the government has permitted certain activities, consumers are still wary of leaving the house and have adopted social distancing as a way of life. The essentials category has witnessed a major surge during the 40-day lockdown and will continue to see an increase in the overall demand. With certain relaxation in the non-essential sale in the green and orange zones, we are witnessing a similar growth in the other sectors. The E-commerce industry is expected to see a steep increase in orders in the long run as the consumers would adjust to the new norms post the lockdown.”