Not only top e-commerce players like Flipkart and Amazon, but Alibaba backed Paytm mall also claimed to have cornered a significant slice of the market pie as well. It claims 20% of total e-commerce sale during the festive season. Paytm Mall said that 40% of its festive sales were contributed by its online-to-offline (O2O) model and claims to have achieved an annualized GMV run-rate of approximately $4 billion.
O2O Model Leads to Increase in Retailers on Board
“Our O2O model will lead to a month-on-month increase in retailers on board, thereby causing an increase in acquisition of customers.” Said Paytm Mall’s COO Amit Sinha.
While the majority of the e-commerce platform customers were existing Paytm users, the company claims to have witnessed a six-fold increase in new consumers.
Analysts View on Overall Festive Sales
Analysts, who said that 80% of the overall festive sales worth $2.8-2.9 billion were cornered by Flipkart and Amazon India, are skeptical about Paytm Mall’s performance. They have pegged the company’s overall festive sales at no more than $200 million, primarily powered by cashback offers.
Paytm’s GMV during the festive season has been contributed by home appliances, smartphones, laptops, and two-wheeler, while most units sold have been from the FMCG section, a category which has been Amazon India’s focus as well.