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.