Ecommerce platforms witnessed a substantial Gross Merchandise Value (GMV) of INR 29,000 Cr during the initial four days of the festive season sales, starting on October 7, reflecting year-on-year (YoY) growth of 16%.
In the first four days of the festive sale, average daily sales remained six times higher than regular days, according to a report by Redseer Strategy Consultants.
This year, platforms selling high-value items such as mobiles, electronics, and large appliances experienced a more significant increase in the average order value compared to last year, the report added.
Furthermore, the ‘Pre-book/Price lock’ option, combined with attractive deals and accessible financing options like no-cost EMIs boosted festive sales. Consumers eagerly locked in prices for products before the festive sale.
As a result, on Day 0, also known as the Early Access Day, sales surged tenfold compared to usual business days. Day 1 also experienced a remarkable increase, with sales exceeding seven times the usual levels. Over the first four days of the 2023 festive season sale, daily sales averaged approximately six times the typical volume in 2023.
Categories such as fashion, beauty and personal care, and home are expected to see increased interest during the latter half of the first week of the festive sale, according to the report.
“Premiumisation as a theme is clearly being seen in this Festive Season as consumer discretionary spending in high-ticket categories has done well. Further, the steady growth in overall sales and high ASP categories reinforces the belief in the strength of the Indian consumption story,” Mrigank Gutgutia, a partner at Redseer said.
The two major ecommerce players, Amazon and Flipkart, revealed their festive sales numbers recently. While Amazon witnessed more than 9.5 Cr customer visits during the early access day and the first day of the Great Indian Festival 2023 sale, Flipkart logged 9.1 Cr user visits during the first 48 hours of the sale.
OnePlus and Samsung remained the most popular smartphone brands during the first two days of the sale on Amazon.
Mobile phones, appliances, lifestyle, beauty and general merchandise, electronics and home remained top categories on Flipkart during the first 48 hours of the festive sale.
In the initial 48 hours of Amazon’s festive sale, over 80% of customers came from non-metro cities, while Flipkart received over 60% of its total orders from Tier I, II, and III cities during the early access and the first day of The Big Billion Day sale.
In a fierce battle for market share and to accommodate surging demand, the two ecommerce giants, Amazon and Flipkart, adjusted their schedules to align their festive sales. They also introduced more affordable membership plans, priced at INR 399 annually for Amazon and INR 499 for Flipkart, to grant users early access.
As these ecommerce leaders celebrate their 10th year of festive season sales, Redseer earlier predicted that ecommerce platforms were poised for a year-on-year GMV increase of 18-20%, reaching INR 90,000 Cr in total.
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