Ecommerce Is Buzzing This Festive Season
Quick commerce, a subset of ecommerce, has been witnessing robust growth in sales during the ongoing festive season and has been making a mark
Being termed as the most commercially active period of the year, the festivals have been proving to be a lifesaver, over and over again. As the country enters the festive period, ecommerce platforms have embarked on a journey never seen before. Be it selling 693 rakhis per minute or marking 646 per cent growth in perfume sales, the quick commerce firms in the country conquered unchartered territories. With the whole bouquet of festivals lined up, things are poised to scale to newer heights.
The Big Bang For Quick Commerce
As Raksha Bandhan marked the beginning of a long festive season, the quick commerce setups were ready to leverage the opportunity. They not only witnessed a record number of sales but were also able to set new benchmarks for the near future.
Swiggy Instamart, one of the key players in the quick commerce ecosystem managed to cash in on the opportunity quite successfully. “During Rakhi, we experienced our highest-ever order volume, with Rakhis being sold 7X more than last year. Additionally, perfumes saw an impressive 646 per cent growth, reflecting their popularity as gifts,” the company’s spokesperson stated.
Blinkit, another key player in the same landscape “We also hit highest ever orders per minute (OPM), chocolate sales and most other metrics today. At its peak, we hit 693 RPM (Rakhis per minute),” Albinder Dhindsa Co-founder and Chief Executive Officer (CEO) of Blinkit said in a LinkedIn post.
The Janmashtami Bonanza
As the country shifted its focus from Rakshabandhan to Janmashtami, the quick commerce platforms were the first ones to arrive at the scene. Their strength to provide hassle-free shopping with delivery in minutes has changed the scenario. The buying motives of the consumers have also seen a significant shift in the recent years.
"India is moving with a blend of culture, content, and commerce. Festivals like Janmashtami have increasingly become important in terms of showcasing how one is celebrating the theme of the festival. There's an evident growing desire among shoppers to celebrate cultural highlights with a bit of urban modernity," said Chirag Taneja, Co-Founder and CEO, GoKwik.
The Changing Consumer Behaviour
Apart from healthier monsoons and the declining trend of inflation driving sales, especially in rural areas, the shift in consumer mindset has been at the forefront of such a surge in sales. Consumers are now moving away from ‘touch and feel’ aspects and are looking for a kind of shopping that is hassle-free.
“A significant shift in consumer purchasing behaviour is the growing preference for convenience. The market is anticipated to experience a K-shaped recovery, with feature-rich categories continuing to expand. Premium segments such as inverter air conditioners (ACs,) frost-free refrigerators, large-screen televisions, and audio products are expected to see a significant surge in demand this festive season,” said Soumya Chatterjee, Director, Customer Success, India, GfK, an NIQ company.
Even though the in-store experience remains vital for purchasing feature-rich products, the trend of researching offline and buying online is driven by price differences and the wider range of products and brands available online compared to physical stores
Chatterjee stated, “Consumers who once fell into the same target demographic may now have entirely different requirements. Manufacturers must act quickly, as product features and pricing are now more critical to consumers than they were a year ago.”
Expectations From Core Festive Season
As we are now moving towards the core festive season, the brands and platforms are seeking to lure consumers through strategies and offers. These online platforms are making attempts to make a mark in this festive season.
“We expect this festive season to be our biggest ever shopping event in India, following the tremendous success of our recently concluded Prime Day that saw record-breaking Prime member engagement,” Amazon India spokesperson shared company’s goals for the season.
While the ecommerce platforms have disrupted the offline retail sales of electronics, the industry expects the fashion, home décor to dominate the upcoming festive season. Attractive discounts are set to be dealmakers when it comes to the conversion.
“Fashion sectors tend to be in demand during the festive season as it is believed to be a ritual in India to wear new outfits that go with the custom of the festivals. This is followed by home decor and sweets which are vital elements of festivals. Few other segments like electronic gadgets and automobiles see a surge in sales due to attractive discounts the season offers," said Sampad Swain, Co-founder and CEO at Instamojo.
Highlighting the importance of artificial intelligence in improving seller and customer experiences, Amazon India’s spokesperson also said, “We continue to innovate using AI and ML to improve seller and customer experiences and ensure fast deliveries.”
Meanwhile, Swiggy Instamart is gearing up to fulfil the demand and supply as the company is witnessing a surge ahead of a big and busy season. “As we approach the busy festive season with Janmashtami, Ganesh Chaturthi, Dussehra and Diwali, we are witnessing a similar surge. Festive items like sweets and fasting essentials typically see a 5X increase on festival days,” the company stated.
With the brands going all-out to win the sales race, the consumers are set to be the real winners. With millions of sellers offering products from top international brands to innovative local startups and traditional artisans, customers will find a vast selection at great value.
