Edited By: Mohammad Haris
Last Updated: February 15, 2023, 14:49 IST
About 80 per cent of consumer demand around Valentine’s Day came in from Tier-I and Tier-II cities.
The online D2C space is fast evolving and is gradually poised to redefine the Indian ecommerce industry
Valentine’s Day has just passed and the day proved to be a growth driver for D2C companies with an increasing number of people flocking to D2C (direct-to-customer) brands to buy gifts for their loved ones. According to a report by Instamojo, total sales during Valentine’s Day seems to be increasing with the volume increasing 150 per cent against 2021. About 80 per cent of consumer demand around Valentine’s Day came in from Tier-I and Tier-II cities.
“Valentine’s Day is proving to be a growth driver for D2C companies with an increasing number of people flocking to D2C brands to buy gifts for their loved ones. On this note, Instamojo, an Indian D2CTech brand, launched its #D2CTechLove Report to enable D2C brands to unravel and demystify the consumption potential around Valentine’s Day and thereby expand their reach,” Instamojo said in a report.
Sampad Swain, co-founder and CEO of Instamojo said, “With increasing consumer trust in the internet and the growing entrepreneurial spirit of India, the online D2C space is fast evolving and is gradually poised to redefine the Indian ecommerce industry. What’s more intriguing is how micro business owners in the D2C space are driving and optimizing the power of the internet to sell innovative and niche products while abundantly leveraging topical days such as Valentine’s Day.”
He added that one of the most telling consumer insights from the report is how Valentine’s Day has been largely an urban phenomenon with a major proportion of the sales limited to Tier I and Tier II cities while smaller towns are yet to catch up.
Here Are The Key Insights Of the Instamojo Report:
* 80% of consumer demand around Valentine’s day came in from Tier-I and Tier-II cities
* Tier-I cities have the highest demand for D2C products during Valentine’s day, contributing to 45% of the total demand in 2022. However, demand seems to be falling from Tier-I cities, recording a drop of 6% since 2021
* Tier-2 cities have the second highest demand for D2C products during valentine’s day, contributing to 35% of the total demand in 2022. Tier-2 cities seem to be slowly replacing Tier-1 cities recording a growth of 13% in demand since 2021
* Total sales during valentine’s day seems to be increasing, with the sales volumes increasing by 150% since 2021
* Love is timeless, 68% of the total demand for D2C products received a week before and after Valentine’s Day
* Love is timeless, but sales might not be. While the demand for products was the highest a week before Valentine’s week, conversion of this demand to sales was the lowest with more than 2% of the consumers dropping off
* Demand to sale conversion was the highest on the week of valentine’s day and the week after. This is largely because people who finalize a product a week before valentine’s day actually buy the product on the week of valentine’s or after. Breaking the Monday blues, 23% of all sales during the Valentine’s week happened during Mondays
* Beauty and Personal Care had the highest sales on Wednesday and Thursday contributing a total of 41% to the overall sales in this category.
* Only 5% of customers chose to travel on Monday and Wednesday, in contrast to Fridays, which were preferred by 26% of customers. About 29% of the customers bought gifts and flowers on Tuesdays. On Thursdays, more than 40% of customers adopted Pets and Animals.
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