The great Indian festival of hiring: E-commerce companies gear up for India’s shoppers
- Over five lakh temp jobs will be created across
e-commerce companiesin the festive season.
- Highest demand in hiring is seen in quick commerce, retailers and FMCG companies.
- Indian shoppers expected to indulge in ‘revenge shopping’ this festive season.
AdvertisementAmidst a rise in post-pandemic purchases and economic activity, e-commerce companies are gearing up for the festive season by expanding their temporary workforce at a rapid clip. This festive season is expected to see a two-fold increase in logistics and delivery alone as shoppers are expected to indulge in ‘revenge shopping’.
In the season beginning October and lasting till December, companies will add 20% more to their current workforce base, and the pay scale will be 8%-10% higher than last year, according to human resources analytics firm TeamLease. Also, it expects India to have 372 million online shoppers by the end of 2022.
“Overall five lakh additional jobs are expected to be added during India’s festive season. In the FMCG sector, the demand for Feet-on-Street salespeople (FOS) will be the highest. Companies will add 20% more to their current workforce base and even pay about 10% extra than last year,” TeamLease said.
“Myntra has a robust last-mile delivery facility with 80% MENSA (Myntra Extended Network for Service Augmentation) partners. The additional incentivisation of the frontline delivery partners during the peak days will also go into creating a smoother consumer experience, particularly our Big Fashion Festival,” Nupur Nagpal, CHRO of Myntra told Business Insider India.
Sales during the festive period generate huge revenue for e-commerce companies. According to wealth management firm Bernstein’s report, GMVs (gross merchandise value) of e-commerce firms during October sales reached $9.3 billion in 2021, a jump of 26% year on year. Flipkart led the festival market share with 62% while Amazon had 27%.
Hiring across big and small companies
E-commerce companies, big and small, have plans of increasing hiring and expanding operations. Retail stores are also seeing a pick up in activity and will join the hiring bandwagon.
“By mid-quarter, especially across quick commerce, hiring will pick up by 20% during festivities. Retail stores badly affected by the pandemic are now reviving and expected to increase their hiring. This is especially to cater to the weekenders, who walk in swathes during the festive season,” said Ajoy Thomas, vice president and business head at
The New Shop, an omnichannel e-commerce company largely operating in North and West India, plans to have 1,000 stores in India by 2025 and is on a hiring spree as well. The company is a 24-hour convenience store that sells FMCG products.
Advertisement“The festive season has always been big for the retail industry. On an average, the consumer’s discretionary spending increases during festivals, which leads to more customers and gift giving. Hiring will increase by 10-15% and store operations are expected to rise 70-100%,” Aastha Almast, co-founder of The New Shop, told Business Insider India.
The New Shop wants to focus on Tier 2 and Tier 3 cities, and is expecting to hire over 200 employees in the cities of UP, Haryana and MP.
TeamLease’s Thomas said that although there is an increase in temp hiring during the festive season, it is crucial that the e-commerce companies absorb these workers into the workforce permamently after the festivities are over.
India’s unemployment rate had gone upto 23.5% during April 2020 according to Statista report. As of May 2022, it stands at 7%. The great Indian festivals post-pandemic are expected to lower this statistic further.
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