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Flipkart leads e-commerce market with 48% share, Meesho fastest growing platform

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Flipkart’s user base grew 21% year-on-year (Y-o-Y), Meesho accelerated at 32% while Amazon lagged at 13% user growth

New Delhi: Walmart group firm Flipkart continues to dominate the e-commerce segment with 48% market share while Softbank-backed Meesho has emerged as the fastest growing e-commerce platform in terms of user base in India, the latest report by AllianceBernstein said.

According to the report, Flipkart’s user base grew 21% year-on-year (Y-o-Y), Meesho accelerated at 32% while Amazon lagged at 13% user growth primarily due to relative premium offerings as compared to peers.

” 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 are the largest categories for Flipkart with around 50% and 30% mix. Flipkart is estimated to hold 48% and 60% market share in online smartphone and online fashion market respectively,” the report said.

The report attributed the growth in Meesho’s market share primarily to its strategic focus on Tier 2 and smaller cities due to its mass positioning, operating through a zero-commission model.

“In the last 12 months, Meesho’s order volume grew 43% Y-o-Y with revenue growth at 54% through healthy take rates, repeat customers are around 80%,” it said.

The report said that Meesho’s around 80% of the sellers are retail business owners and about 95% of the selection on the platform is unbranded.

“Meesho is the fastest growing e-commerce platform in India with around 120 million average monthly active users (MAUs),” the report said.

According to AllianceBernstein analysis, the current GMV (gross merchandise value) run rate of Meesho business is over USD 5 billion with around 50% GMV from apparel, BPC (beauty and personal care) around 8-10% and home and kitchen contributing in the range of around 8-10%.

“We expect Meesho to be the key gainer with over 48% downloads in Indian eCommerce and gain incremental market share,” the report said.

A Nielsen Media study, commissioned by Amazon India, in September found Amazon India to be the most preferred online brand for the respondents across India.

In fashion e-commerce, Reliance-owned Ajio has been acquiring users and currently holds around 30% market share based on MAUs, however, Flipkart Group firm Myntra continues to hold the highest market share in terms of active users with over 50% 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.

Amongst e-grocery players, Blinkit continues to grow the fastest driven by maturity in the market.

Zepto, which began its operations in April 2021, however, lags as compared to Blinkit in terms of product offerings and reach, the report said.

“As per our industry discussions, quick commerce is a 3 player structure in India with Blinkit as a market leader with nearly 40% share, Instamart at 37-39% and Zepto at around 20% share from a GMV perspective,” the report said.

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