BENGALURU: Fuelled by high pent-up demand and premiumisation, e-commerce sector sales are expected to reach Rs 1 lakh-1.20 lakh crore in Gross Merchandise Value (GMV) this festive season. According to Redseer Strategy Consultants' latest analysis, the sector is expected to witness 20% year-on-year growth.
The increase in e-commerce activity can also be attributed to new selection & range and BAU (Business As Usual) growth trend, according to the study.
This festive season, mobiles, electronics and fashion are gaining momentum. BPC, home and quick commerce-led grocery too will see an incremental upside, taking their festive growth numbers north of 25%.
"Mobiles and electronics remain key value & growth drivers this festive season, especially as consumers respond to affordability options that make premium products more accessible. Moreover, sellers and platforms have potential to unlock the pent-up demand in the category by optimising for pricing and selection," said Kushal Bhatnagar, Associate Partner at Redseer Strategy Consultants.
Quick commerce, which saw significant traction last year, is set to contribute about 8% to overall e-commerce growth this festive season, up from 5% last year. Initially focused on grocery deliveries, quick commerce has now expanded into beauty and small electronics, driven by consumers’ increasing demand for fast, on-demand delivery.
Meanwhile, The Bharat Lab, a think-tank, in its latest report 'The Diwali Pulse 2024' said despite rising costs, 36.18% of respondents plan to increase their festive spending compared to last year, while 35.02% will maintain their previous spending levels.
The findings reveal a festive surge in optimism, as consumers across the country prepare for the biggest shopping season of the year.
New clothes and accessories remain the most popular Diwali purchase category, with 86.35% of respondents planning to refresh their wardrobes, followed by personal gifts (72.84%) and home décor (70.83%). Electronics (60.92%) and jewellery (48.13%) also feature prominently on the shopping list.
Over 85% of Millennial and Gen Z shoppers prefer online purchases, the report said.
Amazon Great Indian Festival 2024 sees 11 crore customer visits in first two days
The Amazon Great Indian Festival, which started from September 27, witnessed 11 crore customer visits in the first 48 hours. It also saw 8,000 sellers surpassing Rs 1 lakh in sales.
The Amazon Great Indian Festival 2024 witnessed encouraging demand from tier II and tier III cities, across key categories including appliances, fashion and beauty, smartphones and furniture from popular brands, the e-commerce firm said.
“We are thrilled to witness the biggest ever opening with a record 11 crore customer visits, and the highest number of Prime members shopping during PEA. We also witnessed an overwhelming participation of sellers across India, including small and medium businesses, and thousands of sellers became lakhpatis during the first 48 hrs of AGIF ‘24," said Saurabh Srivastava, Vice President – Categories, Amazon India.
More than 75% of all smartphone sales came from tier 2-3 towns with almost 70% of all premium smartphone sales (above Rs 30,000) being from tier 2 & beyond cities. Also, about 80% of all television orders came from tier 2 - 3 cities with 50% customers opting for EMI. Laptops saw 5X growth from tier 2-3 cities (vs tier 1), while headphones and cameras saw double digit growth in tier 2 and 3 cities YoY.