Mobiles Have Highest Seasonal Demand, Grocery Lowest in Online Space
The sectors focused on daily consumption and recurring needs are the most stable
Chennai: In online space, the annual September-October period of the festive season sees a peak in demand. While the seasonality is highest in electronics and mobiles, it is lowest in grocery.
As per a study by RedSeer, mobiles and electronics exhibit the highest levels of seasonality, making them the riskiest to manage operationally.
Mobiles have the most dramatic swing, with a Seasonality Index Difference of 1.7 between the highest and the lowest month. Electronics follows closely with a difference of 1.3.
Both have heavy reliance on festive season and peak sharply in September-October, with mobiles reaching a monthly index close to 2.3 and electronics nearing 2.
Home, furniture and fashion display substantial but less extreme seasonal volatility.
Home and furniture registered a Seasonality Index Diff of 0.85. Its demand curve shows a pronounced Sept-Oct peak, reflecting consumer spending on home upgrades during the festive period.
Fashion is moderately seasonal with a diff of 0.52. Its curve is flatter throughout the year but still registers a clear lift in the Sept-Oct period.
The sectors focused on daily consumption and recurring needs are the most stable. Grocery has the lowest volatility of the six, with a Seasonality Index Diff of 0.3. Beauty and personal care are the next most stable, with a diff of 0.4. The monthly curves for both are significantly flatter, consistently hovering close to the average monthly GMV throughout the year. This stability is characteristic of low-ticket, high-frequency purchase items.
According to RedSeer, the strategic imperative remains to flatten the curve as much as possible. For Mobiles and Electronics, brands should consider launching exclusive models or sales events in months between January and April to generate new sales cycles and reduce the reliance on the single Sept-Oct peak for the majority of their annual revenue. This stabilizes the supply chain and provides a more consistent flow of business.
