This year’s online festive season sales are anticipated to reach a gross merchandise value (GMV) of Rs 90,000 crore, driven by favorable global trends, according to a report by Redseer Strategy Consultants.
The report predicts an 18-20% increase in sales compared to last year’s festive month sales, thanks to approximately 140 million online shoppers expected to make transactions during the season. This year’s sales are expected to boost consumption demand as the economy recovers from the COVID-19 pandemic.
“The Indian e-tailing has increasingly become the litmus test for consumer demand in India. The 10th festive season sale period is even more significant this year considering the recent slowdown in consumption and the almost three years of external shocks on the economy,” the report noted.
The report notes that Indian e-commerce sales have become a key indicator of consumer demand in the country, especially given recent consumption slowdowns and economic shocks.
Two major factors supporting e-commerce growth in India are the rebound in nominal Private Final Consumption Expenditure (PFCE) and the diversification of product categories beyond electronics. Beauty and personal care, home and general merchandise, and fashion are expected to contribute significantly to the overall GMV during the festive season.
“Over the last several quarters, we are seeing enhanced GMV contributions from categories beyond electronics. While electronics sell a lot in the festive period, looking at the bigger picture and comparing the festive sale periods over the last several years, there is a clear trend of category diversification,” Mrigank Gutgutia, Partner at Redseer Strategy Consultants, said in a statement.
“This is good for the ecosystem as it shows consumers’ willingness to purchase multiple categories online and more brands coming to cater to their needs,” he added.
Additionally, direct-to-consumer (D2C) brands are expected to play a prominent role, and there will be robust growth across various city tiers. The adoption of new technologies like generative AI is also expected to enhance the consumer experience during the festive season sales.
