“As noted in Q4FY23 (January-March 2023), we believe (the) consumption slowdown continued in Q1FY24E (April-June 2023) in most business-to-consumer (B2C) consumption categories. We think this is due to sustained consumer inflation and its impact on disposable income as ‘return to office’ continues to be implemented across the country. However, online commerce seems to be faring better than offline,” the report, dated July 10, mentioned.
Both Nykaa and Zomato are but to report their June-quarter earnings.
On July 7, Nykaa had knowledgeable the inventory exchanges that its vogue vertical is “expected to grow in the low to mid teens on YoY basis” in web gross sales worth (NSV) phrases for the June-quarter.
In retail, NSV is the sum of an organization’s product sales minus its returns, allowances and reductions. “This, we think, is higher than the growth rate for the apparel segment and could indicate share gains for online fashion,” mentioned the brokerage agency.
ICICI Securities identified that the majority attire retailers had been struggling to extend their revenues within the first quarter of FY24, whereas Nykaa is estimated to raise its vogue revenues by 11% 12 months on 12 months.
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Additionally the ICICI Securities report famous that Zomato is anticipated to outpace most quick-service eating places (QSRs) “on a like to like basis”. The brokerage agency expects Zomato to report 9.2% year-on-year development in its food-delivery gross order worth (GOV), and 6.8% development sequentially. Listed gamers in India’s QSR house embody Jubilant Foodworks, which operates Domino’s Pizza and Dunkin Donuts shops; Devyani International, which runs the franchisees of Yum Brands eating places resembling KFC, Pizza Hut, and many others; and Restaurant Brands Asia Ltd, which operates Burger King’s franchisees.
“We think this (growth in Zomato’s food delivery GOV) was aided by increased participation from Zomato Gold members. We estimate marginal improvement in food AOV (average order value) of 0.8% QoQ, as we think higher cart sizes should more than compensate for lower blended delivery charges (-2% QoQ),” ICICI Securities mentioned.
For the January-March quarter, Zomato had reported GOV of Rs 6,569 crore for its meals supply business — recording a sequential fall from the December quarter. For the April-June 2022 quarter, the corporate had recorded GOV for meals supply of Rs 6,425 crore. Zomato defines food-delivery GOV as the entire financial worth of orders, together with buyer supply expenses, taxes, gross of all reductions, excluding suggestions.
“We think both these data points indicate possible market share gains for online vs offline. This is in contrast to the trend that was playing out over the last 2-3 quarters,” the report famous.
Overall ecommerce shipments are additionally anticipated to develop through the June quarter, ICICI Securities has estimated, because it anticipates 19.6% on-year development in new-age logistics participant Delhivery’s categorical parcel cargo volumes.
Source: economictimes.indiatimes.com