As India is expected to see strong festive consumption this year, the ecommerce firms in the country are likely to be the key beneficiaries and outdo last year’s performance, a recent report by Redseer Strategy Consultants has revealed that ecommerce firms such as Amazon, Flipkart and Meesho may register a YoY growth of 20 per cent this festive season.
The report stated that the ecommerce sector is poised for substantial growth and the gross merchandise value (sales) is expected to be around Rs 1 lakh crore to Rs 1.2 lakh crore. Quick commerce is expected to register 100 per cent YoY growth and will contribute around 8 per cent to the total ecommerce growth during the season.
“Mobiles and electronics have long been the leading categories during festive sales, as customers typically wait for the year’s best collection and offers on these items. However, this year, there is anticipation for high pent-up demand in fashion as well. Online fashion’s business as usual (Bau) performance has been slightly subdued, however, with brands undertaking focused efforts to push the right selection and pricing, they seem well-placed to unlock the pent-up demand in the category,” read the report.
The report has stated that the season is expected to see a continued shift towards premiumisation in consumer preferences as brands are introducing innovative promotional offers like exchange deals and bundle discounts on high-end products to encourage purchases of higher-ticket items.
As per a report by Unicommerce, the ecommerce order volumes grew by 20 per cent during the first four days of the festive season sale in 2024 (26th to 29th Sept 2024) when compared to the first four days of the festive season sales last year (7th to 10th Oct 2023). In the same period, the gross merchandise value (GMV) also increased by 24 per cent over last year.
Some of the product categories that observed a notable increase in volumes include fashion and accessories with over 32 per cent growth with high demand for products like travel accessories, watches and kids' apparel. Makeup products witnessed an impressive 54 per cent YoY growth during this festive sale, as per the Unicommerce report.
