Flipkart Dominates E-commerce with 48% Share, Meesho Fastest-Growing Platform: Study

The report credited Meesho's market share expansion to its strategic emphasis on Tier 2 and smaller cities, driven by its mass positioning and adoption of a zero-commission model

As per the report, Flipkart witnessed a 21 per cent year-on-year (YoY) growth in its user base

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The e-commerce firm Flipkart continues its supremacy in the e-commerce sector with a 48 per cent market share. Meanwhile, Softbank-backed Meesho has emerged as the fastest-growing e-commerce platform in India, particularly in expanding its user base, according to a latest report by the asset management firm AllianceBernstein.

As per the report, Flipkart witnessed a 21 per cent year-on-year (YoY) growth in its user base. Meesho surged ahead with a 32 per cent increase, while Amazon trailed with a 13 per cent user growth. This lag is attributed to Amazon's relatively premium offerings compared to its competitors.

" As of FY23, Flipkart was the market leader, with a 48 per cent share in India eCommerce. Flipkart continues to grow faster than the industry... Mobile and apparel to be the largest categories for Flipkart, with around 50 per cent and 30 per cent mix. Flipkart is estimated to hold 48 per cent and 60 per cent market share in online smartphone and online fashion market respectively," the report said.

The report credited Meesho's market share expansion to its strategic emphasis on Tier 2 and smaller cities, driven by its mass positioning and adoption of a zero-commission model.

"In the last 12 months, Meesho's order volume grew 43 per cent YoY with revenue growth at 54 per cent through healthy take rates, repeat customers are around 80 per cent," it said.

According to the report, approximately 80 per cent of Meesho's sellers are retail business owners, and nearly 95 per cent of the products on the platform are unbranded.

"Meesho is the fastest growing e-commerce platform in India with around 120 million average monthly active users (MAUs)," the report said.

The report’s analysis reveals that the current GMV (gross merchandise value) run rate of Meesho business is over $ 5 billion, with almost 50 per cent GMV from apparel, BPC (beauty and personal care) are around 8-10 per cent and home and kitchen contributing around 8-10 per cent.

"We expect Meesho to be the key gainer with over 48 per cent downloads in Indian eCommerce and gain incremental market share," the report said.

In September, a Nielsen Media study commissioned by Amazon India revealed that Amazon India was the top choice among respondents across the country as the most preferred online brand.

Within the area of fashion e-commerce, Ajio, owned by Reliance, has been steadily gaining users and currently holds approximately 30 per cent market share based on MAUs. However, Myntra, a subsidiary of the Flipkart Group, remains the leader with the highest market share of over 50 per cent in terms of active users.

"In December 2023, Myntra exhibited the highest growth rate amongst peers at 25 per cent. A closer look at the business suggests that users on the app are not transacting as much as previous trends, Myntra’s GMV grew only 12 per cent in FY 23 as compared to 35 per cent in FY22," the report said.

In the e-grocery sector, Blinkit maintains its position as the fastest-growing player, fueled by market maturity. On the other hand, Zepto, which started operating in April 2021, needs to catch up to Blinkit in terms of both product offerings and market reach, according to the report.

"As per our industry discussions, quick commerce is a 3 player structure in India with Blinkit as a market leader with nearly 40 per cent share, Instamart at 37-39 per cent and Zepto at around 20 per cent share from a GMV perspective," the report said.