News Update

Consulting firm RedSeer predicts online sales to account for 25% of major retail categories by 2026

• ByStartupStory     |    March 30, 2023

According to a report by RedSeer Consulting, online sales are expected to surpass 25% of sales across major retail categories (excluding grocery) by 2026, reaching a total of $163 billion. The report, titled “Digital Disruptors,” identifies 75 companies that are category leaders, accounting for nearly $15 billion in online sales. Rankings were determined based on metrics such as online market share within their respective categories, percentage of sales from ecommerce, and performance and growth on ecommerce platforms.

According to the report, boAt, a digital-first electronics and appliances brand, leads the category, followed closely by BBK, the parent company of smartphone brands OnePlus, Oppo, and Vivo, and computer and phone hardware manufacturer Asus. Mohit Rana, a partner at RedSeer, noted during the report launch that Oppo and Vivo have traditionally been offline brands, while Asus is known for its focus on online channels, particularly for gaming laptops targeted at younger audiences. Samsung India ranked tenth on the list, as sales of large appliances such as refrigerators continue to be higher through offline channels. Meanwhile, Apple India, which ranked 24th, has consciously prioritized promoting its offline franchisee model over online sales due to the high value of its products.

Aditya Birla Fashion and Retail, Puma India, and Wakefit lead the home and fashion category, while Hindustan Unilever and L’Oreal India dominate the grocery and personal care category, according to a recent report by consulting firm RedSeer. The report evaluated over 1,000 companies and 2,000 brands across 50 sectors, ranking 75 companies with almost $15 billion in online sales based on metrics such as online market share, percentage sales from ecommerce, growth, and performance on ecommerce platforms. Licious, a direct-to-consumer meat brand, ranked third in the grocery and personal care category.

Consulting firm RedSeer has suggested that traditional brands need to adopt an omnichannel approach and build digital capabilities to stay relevant in the digital age. The firm’s report titled “Digital Disruptors” ranked 75 companies based on metrics such as online market share, ecommerce sales, and performance on ecommerce platforms. The report also categorised companies into four quadrants based on their digital strategy adoption, with “Tigers” being the early movers, “Elephants” representing legacy players and dominant offline players, “Rabbits” being digital-first companies leveraging ecommerce channels, and “Turtles” including offline brands with slow adoption of online sales. RedSeer CEO and founder, Anil Kumar, stressed the importance of building digital capabilities to stay relevant in the digital age. 

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