Online sales in categories such as electronics and beauty slowed in India in the first quarter

Recently, according to foreign media reports, in the first quarter, the consumption of electronic products, wearable devices and beauty products in the Indian e-commerce market slowed down.

It is understood that Indian logistics giant Delhivery's parcel shipments in the first quarter (a measure of e-commerce delivery volume) fell 13% quarter-on-quarter to 176 million units. Deliveries were also down 2 percent compared to the same period last year. Delhivery chief executive Sahil Barua said the decline in the first quarter followed a strong performance in the October-December promotional season last year.

Meanwhile, according to data research firm IDC, online shipments of wearables such as headphones and smartwatches fell 14.1 percent year on year in the first quarter, the second consecutive quarter of decline. A senior executive at a smartwatch maker said that in the fourth quarter of last year, brands stocked up on more inventory for promotional activities, but demand did not meet expectations, and the impact was reflected in a decline in the average selling price of products.

A shift in purchasing patterns to offline and a lack of new product launches also contributed to the slowdown in smartphone sales. Counterpoint Research, a market intelligence firm, noted that smartphone shipments in India in the first quarter grew by only 8% year-on-year. However, the upmarket trend of smartphones continues. The market value of the premium segment (items priced above Rs 30,000) increased by 18% and accounted for 20% of the total sales volume in the quarter and 51% of the total sales volume, both the highest levels in history.

While in the fashion and beauty care segment, Honasa Consumer, the parent company of well-known care brand Mamaearth, saw only single-digit growth in FY2024 and is now realigning its offline strategy to improve growth and margins. Meanwhile, Nykaa, a fashion e-commerce platform, noted that consumer brands are shifting advertising spending to increase discounts to drive the currently sluggish demand