Page 52 - Edelweiss India Conference 2022 FLIPBOOK
P. 52
THE NEW EDGE
Growth skewed toward select verticals
E-commerce growth has been skewed towards certain verticals such as electronics, fashion,
health and beauty. Apparels and consumer electronics form ~80% of the e-commerce retail
in India; other verticals’ contribution hence is much lower.
Other
Furniture
Jewellery
Food & Grocery
Apparels
Consumer Electronics
0 5 10 15 20 25 30 35 40 45
(%)
A horizontal
e-commerce company If we were to look at the most popular categories of products purchased online, some of the
that sells everything common features of these product categories are: i) they do not require assisted selling or
under the sun caters to handholding during the process; ii) except fashion and clothes, most services and products
needs of all customer
segments across low a ticket size; and iv) delivery of such products does not require any specialised or
demographics
These specialised requirements have resulted in the emergence of specialised players,
dealing in a single vertical. Given these verticals have unique requirements with respect to
Some verticals such as beauty, eyewear, fashion and furniture have broader or complex
products portfolios, requiring assisted selling. Others such as furniture, medicines and
online gifting require specialised supply chains.
A horizontal e-commerce company that sells everything under the sun caters to needs of
all customer segments across demographics. Hence, it cannot possibly have tailor-made
content for each of its customer segments.
50 Edelweiss Securities Limited
