E-commerce sector records 12% growth in gross goods value during festive season

Smaller cities showed the highest growth rate in spending, rising to 13% in 2024, and there was a market rise in prepaid transactions which enhanced the shopping experience in the smaller towns.
Representational purpose.
Representational purpose.
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BENGALURU: The ecommerce sector has recorded a gross merchandise value (GMV) of about $14 billion during this festive season (from September 15 to October 31), which is 12% growth compared to last year’s festive period.

The growth was fuelled by resilient consumer spending across categories, including quick commerce, electronics, fashion, beauty and personal care (BPC), home furnishings and groceries, with significant contributions from Tier 2+ cities and increased per-shopper spending, Redseer Strategy Consultants revealed in its analysis of the 2024 festive ecommerce season.

The report said smaller cities showed the highest growth rate in spending, rising to 13% in 2024, and there was a market rise in prepaid transactions which enhanced shopping experience in the smaller towns.

Fashion has emerged as the fastest-growing category, with a 3X growth rise over the BAU (business as usual) months this fiscal. Ethnic wear and accessories drove this growth, particularly in Tier 2+ cities, wherein unbranded ethnic wear, jewellery, and women’s accessories gained traction.

On the other hand, premium and international brands observed robust sales in Tier 1 markets, the report said. The quick commerce sector also extended its offerings to include electronics and home appliances, meeting festive demand through expanded delivery hours. Non-grocery sales spiked on key festive days, with Delhi, Mumbai and Bengaluru among the top-performing cities.

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