Unit Economics in 2017 Festive Days - Tech Carving

Unit Economics in 2017 Festive Days

Sep’17 e-tailing sale days expected to lead to cash burn of up to USD 400 Mn

Research and advisory firm RedSeer Consulting which aims at achieving excellence in the consumer internet market, reveals its take on the unit economics during the 2017 edition of the e-tailing mega sales event.

For the 2017 festive sale days, the RedSeer analysis shows that the cash burn for the e-tailing industry as whole is expected to reach up to USD 370-400 Mn this year (on an expected gross GMV of USD 1.5-1.7 Bn ), up from USD 200-250 Mn last year (on a gross GMV of USD 1.05 bn) . Breakdown of expected cash burn by P&L component is highlighted below-


Commenting on the unit economics in 2017 festive days, Anil Kumar, CEO of RedSeer Consulting said-
As e-tailers focus on an offering better than ever discounts and also offering a faster than ever delivery experience, including to Tier 2+ cities, this year will see a significant growth in cash burn y-o-y. Which could pay off if the industry is able to deliver a top-class experience to the millions of new shoppers this time around and retain them going forward.
Powered by Blogger.