Ecommerce fails to click for firms in Q4 as sales dip across segments

economictimes.indiatimes.com:

online consumption across segments such as electronics, wearables and beauty products, as flagged by multiple listed companies and industry trackers.

For the fourth quarter, logistics firm Delhivery said its express parcel shipments, a proxy for ecommerce delivery volumes, declined 13% sequentially to 176 million.

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Cofounder and chief executive Sahil Barua indicated that the slump in the March quarter came after a strong October-December period, when ecommerce marketplaces hold their festive season sales. However, even on a year-on-year basis, delivery volumes for the company were down 2%.

Brokerage firm Citi in a report on Delhivery’s results acknowledged the “muted online consumption,” but said that it did not “anticipate risk to long term 15%-20% growth expectations in ecommerce” due to this.


Beauty and fashion retailer Nykaa flagged consumer brands diverting their advertising dollars to increase discounts with an aim to drive demand that has become subdued. In the post-earnings analysts call on May 22, Anchit Nayar, CEO of Nykaa E-retail, said that he hoped brands would shift their spends back to advertising once demand picked back up.

Similarly, Honasa Consumer, parent company of beauty and personal care brand Mamaearth, saw its flagship brand