As India’s festive season kicks off, e-commerce giants like Amazon and Flipkart have launched their highly anticipated sales. With a surge in demand and premiumisation trends, online shopping sales are projected to reach ₹1.2 lakh crore in gross merchandise value (GMV) this year, representing a 20% year-on-year growth, according to a report by Redseer Strategy Consultants.
The report highlights that categories like mobiles, electronics, and fashion will drive sales momentum. At the same time, segments such as beauty, personal care, and home products will experience growth of over 25% this festive season. The increased focus on these sectors will fuel e-commerce expansion during this critical sales period.
According to reports, mobiles and electronics are key value and growth drivers. He emphasised the role of affordability options, which make premium products more accessible to a broader audience, particularly in tier 2 cities and beyond. As consumers take advantage of attractive discounts and offers, brands and platforms can tap into the pent-up demand by optimising pricing and selection.
“Consumers are responding positively to premium product options, and sellers have the potential to unlock further demand with strategic pricing models,” Bhatnagar said. Additionally, e-commerce platforms are partnering with brands to offer attractive discounts, enticing aspirational shoppers with premium products at lower prices.
Brands also leverage e-commerce platforms to reach customers in less accessible areas, particularly tier 2 and tier 3 cities. Focusing on deeper market penetration is expected to generate significant sales as more customers from these regions turn to online platforms for festive shopping.
Quick commerce, which has gained traction over the past year, is also poised to play a vital role in this season’s growth. It is predicted to contribute around 8% to overall e-commerce growth, up from 5% in 2022. Quick commerce platforms, known for their fast delivery services, are likely to push newer categories, such as home and kitchen appliances, helping to boost average order values and overall profitability.
Brands are expected to push premium stock-keeping units (SKUs) at discounted prices this festive season, encouraging customers to indulge in aspirational buying. The combination of lucrative discounts, affordable EMI options, and value-driven deals is set to boost consumer spending across multiple categories.
As the festive season continues, both e-commerce platforms and brands are well-positioned to benefit from India’s growing demand for premium products and fast delivery services. With sales expected to hit ₹1.2 lakh crore, this festive season is shaping up to be one of the most lucrative yet for the e-commerce industry.
