1. © 2023 Redseer Strategy Consultants confidential and proprietary information
Bangalore. Delhi. Mumbai. Dubai. Singapore. New York
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Redseer FestiveReporting 2023
Decoding the key trends during Festive
Season 23
September 2023
Release 2 – Small sellers' perspective

2. Despite short term headwinds in the
last few quarters, India’s online seller
ecosystem is bullish about this festive
season and the long-term opportunity
for MSMEs to benefit from selling
online remains intact
Release 2

3. 3
© Redseer
While MSME sellers have hada challenging last few quarters in terms of growth,
they are fairly bullish about the growth prospects in the upcoming festive season
Source(s): Redseer seller surveys
Growth in annualized revenue run-rate (Current vs JFM ‘23)
Question: How much has your annualised revenue
run-rate changedsince JFM 2023?
Question: In this festive month, how much higher revenue do
you expect to earn than what you are earning in last festive
season?
Revenue jump expected in festive month
15%
26%
60%
Minimum Median Maximum
In the context of challenging growth in the last
couple of quarters, sellers are looking forward to
the festive month to turbocharge salesfor this FY
Minimum 15% growth expected
vs last festive season this time
for the online sellers- with median
growth of 26%
40%
Sellers saw > 10% revenue
growth in the most recent
quarter compared to their
sales in JFM 23
Growth online was relatively
muted for the rest of the 60%
sellers interviewed
% respondents, N = 200 surveyed in Sep 23 % respondents, N = 200 surveyed in Sep 23
Note: 1. The sample for the survey included 60% of small sellers (Revenueof <1 Cr), 30% of medium sellers (Revenue of more than 1Cr) and 10% D2C brands. 2. Majority of these
sellers were from the fashion & accessories category

4. 4
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And they are willingto spendhigher on marketing to achievethat
Source(s): Redseer seller surveys, N = 200
Increasein eCommerce marketing spends during festive season 23
Question: In this festive month, how much will you spend in marketingcomparedto last festive season and
your current business as usual (BAU) spends?
15%
22%
75%
Vs. last year festive Vs. current
year BAU spends
50%+
1.4x
1.5x
Smaller sellers are willing to contribute a higher share of their revenue towards ads when compared to
larger sellers
Overall (Smaller + Larger Seller)
Smaller Sellers
% respondents, N = 200 surveyed in Sep 23
Note: 1. The sample for the survey included 60% of small sellers (Revenueof <1 Cr), 30% of medium sellers (Revenue of more than 1Cr) and 10% D2C brands. 2. Majority of these
sellers were from the fashion & accessories category

5. 5
© Redseer
Perception around support provided by eTailing platforms to sellers
And platforms are also helping thesesmaller sellers out to achieve bettersales
this festive season
Source(s): Redseer seller surveys
% respondents, N = 200
Do you agree with this statement-“This yeareTailing platforms have given strong support around sales
planning/inventory management for the festive season”
53%
62%
Current Festive Year
Last Festive year
“I would want the platform to help me
lower down the loss on product returns
and have a more lenient claims
acceptance rates”
- Seller
The platform should provide
valuable insights, data analytics, and
trend predictions in real time during
the festive period to make informed
decisions. This will enabled us to
align our product offerings with
customer preferences and market
demands, resulting in more targeted
sales campaigns.
- Seller
Note: 1. The sample for the survey included 60% of small sellers (Revenueof <1 Cr), 30% of medium sellers (Revenue of more than 1Cr) and 10% D2C brands. 2. Majority of these
sellers were from the fashion & accessories category

6. 6
© RedSeer
eCommerce is nowa critical channel forMSMEs in retail space
33%
39%
56%
< 1 year 1 -3 years > 3 years
eCommerce sales
Offline sales
Increasingshare of salesfromonline channels is leading
to more traditional sellers adopting eCommerce platforms
96%
Did net profits increase after
adopting e-commerce?
Yes
No
41%
14%
By what percentage did
the net profits increase?
0-5%
5-10%
10-15%
15-20%
>20%
Increase in Net Profits by adopting eCommerce – Fashion & BPC Sellers
Q: Did your profit increase after you started selling through ecommerceplatforms?By How much
in absoluteterms?2
% of respondents who sell online,N=1501
~55% of sellers have witnessedan increase in net profits by >15%,
driven by higher visibility and better volumes
Source(s): MSME Surveys,Redseer Analysis
Share of e-Commerce in Totalrevenue (ex-Grocery)
Q: What percentage of your sales are generated through ecommerce?
In %, N=250
Note(s): 1. Sellers who generate some share of sales fromboth online and offline channels (ex-Grocery) 2. Fashionand Beauty & Personal Care Sellers ,
3. The sample for the survey included 60% of small sellers (Revenue of <1 Cr), 30% of medium sellers (Revenue of more than 1Cr) and 10% D2C brands. 4. Majority of these sellers were
fromthe fashion & accessories category
Time since selling online

7. 7
© RedSeer
As eCommerce platforms providekey benefits to
MSME sellers - most prominently, helping them
understand customers better and reaching larger
markets
Benefits of selling on e-Commerce platforms for MSME sellers
Q: What do you think are the top 5 benefits of selling online over offline sales?
N=308,% of respondents1
Benefits for MSME Sellers
Source(s): MSME Surveys,Redseer Analysis
Targeted marketing
Deeper customer understanding
Higher Visibility
Larger addressable market/reach
Lower procurement costs
No need for physical stores
Better margin by eliminating
intermediaries
Faster payment settlement period
59%
50%
50%
46%
36%
34%
32%
13%
Demand-side factors Cost Rationalization
Note: 1. Who have selected the listedoptions as among their top 5 benefits, 2. The sample for the survey included 60% of small sellers (Revenue of <1 Cr), 30% of medium sellers
(Revenue of more than 1Cr) and 10% D2C brands. 3. Majority of these sellers were fromthe fashion & accessories category
• Expanding reach and sales potential,
leveling the playing field for MSMEs
• Offering advanced marketingtools
and dataanalytics for MSMEs to
efficiently target and understand
their audience
• Removing intermediaries and need
of physical stores saving up cost
• Rationalize selling costs through
economies of scale, better margins,
and faster payment settlement
periods
Going forward, T2+
sellers will benefit the
most from the e-com
proposition and have the
fastest adoption

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