Banks will be closed for 15 days during the October-November festive season in India, yet banking activity will be at its peak. This period, which often sees bonus payouts and significant consumer spending, has become a strategic focus for many brands as they develop product strategies aimed at this time. The electronic commerce (e-com) companies and online and omnichannel stores, in particular, anticipate their highest merchandise sales during this festive season.
Market research firm Datum Intelligence estimates that e-com players and online sellers are expected to ship merchandise worth $12 billion to consumers in India during this year’s (2024) festive season. This is 23% higher compared with about $9.7 billion in the previous year. Out of this $12 billion merchandise, the quick commerce players, the online stores which deliver the goods in half an hour to one hour time, alone expects their sales to be at least $1 billion in terms of gross merchandise value.
The strategies employed by e-commerce companies and online stores during this period are critical for driving consumption growth in the country in recent years. Leading players like Amazon and Flipkart have already launched their seasonal sales, while several online and omnichannel retailers in the fashion, consumer electronics, and jewelry segments have announced mega offers to maximize their advantage this season.
During the festive season in India, several consumer trends typically emerge, reflecting cultural significance and changing preferences. Here are some key trends observed:
Online Shopping Surge: With increasing internet penetration, many consumers prefer shopping online for convenience and the availability of festive deals.
Sustainable Products: There’s a growing demand for eco-friendly and sustainable products, from decorations to gifts, as more consumers are becoming environmentally conscious.
Local and Artisanal Goods: Shoppers are showing a preference for local and handmade products, supporting artisans and small businesses.
Health and Wellness: With a heightened awareness of health, there’s an increasing focus on organic, healthy food options, as well as wellness products and experiences.
Experience over Goods: Many consumers are opting for experiences—like travel, dining out, and events—over physical gifts, valuing memories over material possessions.
Personalisation: Customized gifts and products are gaining popularity, as consumers seek unique items that reflect personal connections.
Digital Payments: The shift towards cashless transactions continues, with digital wallets and UPI payments being preferred for their convenience.
Home Decor and Renovation: There's a rise in spending on home decor and renovations, as families often host gatherings and want to create festive atmospheres.
Gifting Trends: Traditional gifting remains strong, but there’s a rise in curated gift hampers and experiences rather than traditional items.
Festive Fashion: Ethnic wear remains popular, with a blend of traditional and contemporary styles. Online fashion retailers see a spike in sales during this time.
These trends reflect broader societal shifts and consumer behavior changes, influenced by factors like technology, sustainability, and the evolving cultural landscape.
During the festive season in India, e-commerce companies typically roll out a variety of exciting offers to attract customers. Here are some common types of promotions you might find:
Discounts and Flash Sales: Major discounts on a wide range of products, often during specific hours to create urgency.
Cashback Offers: Incentives where a percentage of the purchase amount is returned to the customer, often in the form of e-wallet credits.
Bundle Deals: Special offers that combine multiple products at a discounted price, perfect for gift shopping.
No-Cost EMI Options: Flexible payment plans that allow customers to buy products without paying interest, making high-value items more accessible.
Free Shipping: Waiving off shipping charges for orders above a certain amount to encourage larger purchases.
Loyalty Points: Increased loyalty points for purchases made during the festive season, which can be redeemed for future discounts.
Exclusive Product Launches: Launching new products specifically for the festive season, often with special pricing.
Contests and Giveaways: Engaging customers with contests or giveaways that can include gift vouchers or products.
Referral Discounts: Offering discounts to customers who refer friends or family to shop on the platform.
Festival-Themed Collections: Curated collections based on the festival, featuring relevant products such as clothing, home décor, and gifts.
Keep an eye on e-com platforms as they often host dedicated festive sale events, such as the Big Billion Days and the Great Indian Festival.
According to a recent analysis by the strategy consulting firm Redseer, online sales are expected to reach $5.9 billion in the first festive week, compared to $4.8 billion in the year-ago period. This surge in sales is attributed to a significant increase in the number of online shoppers in India over the past five to six years.