Redseer Strategy Consultants has released its report on India’s 2024 festive ecommerce season, held from September 15 to October 31, indicating a robust 12 per cent year-over-year growth. This season saw ecommerce sales reach an estimated gross merchandise value (GMV) of USD 14 billion, primarily fueled by heightened consumer demand across categories like fashion, electronics, beauty, and home goods, particularly in Tier 2+ markets.
Fashion emerged as the top-performing category with threefold growth over baseline months, driven by a surge in ethnic wear and accessories. Tier 2+ cities led spending growth, aided by wider access to discounts and premium product availability, as per Redseer's findings. Prepaid transactions also saw a rise in these areas, enhancing the shopping experience for non-metro consumers.
Key Trends in Ecommerce Festive 2024
Increased Spending from Tier 2+ Markets: Smaller cities posted a growth rate of 13 per cent for festive spending. Expanded discounts made premium products accessible to these consumers, with greater reliance on prepaid transactions.
Higher Spend per Shopper Despite Declining New Shopper Growth: Shopper acquisition rates are slowing, but existing customers are spending 5-6 per cent more per person. India’s online shopping base has reached around 250 million annual users, leaving substantial room for increased per-shopper spending.
Fashion Segment’s Record Surge: Fashion was the fastest-growing category, tripling sales compared to other months, largely driven by ethnic wear and accessories, particularly in Tier 2+ cities. Demand spanned both unbranded items in smaller cities and premium or international brands in Tier 1 markets, with Direct-to-Consumer (D2C) brands seeing strong visibility on digital platforms.
Rising Demand for Premium Electronics and Quick Commerce: Prolonged summer conditions fueled demand for air conditioners and large appliances. Quick commerce also expanded its offerings to electronics and home appliances, with increased non-grocery sales on key festive days in Delhi, Mumbai, and Bengaluru.
Kushal Bhatnagar, Associate Partner at Redseer Strategy Consultants, commented, “This season underscored the vast potential of Tier 2+ consumers. Their growing trust in e-commerce is solidifying their role in driving online sales. As quick-commerce expands beyond metros, we anticipate a transformative experience where more Indians will have fast, reliable doorstep deliveries year-round.”
India’s ecommerce landscape continues to evolve with these trends, reflecting a deepening digital adoption and shifting consumer habits across different demographics. Redseer Strategy Consultants remains committed to providing businesses with actionable insights as they navigate this dynamic sector.
Founded in 2009, Redseer Strategy Consultants is India’s leading strategy consulting firm, offering digital business solutions through growth advisory, private equity consulting, and strategic consumer insights. With a global presence and over 200 consultants, Redseer leverages extensive research and proprietary methodologies to support businesses worldwide from its headquarters in Bengaluru.
