E-commerce festive season sales expected to surge 20%

The festive season this year is set to witness a remarkable upswing in the e-commerce sector's gross merchandise value (GMV). According to consulting firm Redseer, the GMV is anticipated to see an 18-20 per cent surge, amounting to Rs 90,000 crore, a leap from Rs 76,000 crore in the previous year October 7, 2023.

The Indian festive season starts with Onam and Rakhi and ends with Diwali in November. December again sees a slight festive celebration with Christmas and New Year! The surge in sales is anticipated to be fuelled by around 140 million shoppers who are expected to make online purchases at least once during the festive season, which spans from the start of Navaratri to Diwali.

It's projected that this festive period will contribute to approximately 17 per cent of the total annual e-commerce sales for the year 2023. The report also highlighted that the festive season is expected to be the biggest shopping season for smartphones, with sales of around 40 million units. Other popular categories include fashion, home appliances, and electronics.

E-commerce players are gearing up for the festive season with a number of initiatives, such as deep discounts, cashback offers, and free shipping. They are also expanding their product offerings and improving their delivery infrastructure to meet the expected demand.

The festive season is a major opportunity for e-commerce players to grow their business and capture a larger share of the market. With the right strategies in place, they can tap into the growing demand for online shopping in India.

In 2023, the festive season is coinciding with the Cricket World Cup adding to the enthusiasm. Events like the successful Chandrayan landing, G20 World Meet, the BRICS summit and the strong economic growth momentum of 7.2 per cent in the 2022-23 fiscal year also have Indians in cheerful spirits.

According to a recently released report – A Marketer’s Guide to the Festive Season by InMobi, unplanned shoppers in India are inclined to shop closer to festivals, with 58 per cent planning to shop around Dusshera and Diwali, whereas about 36 per cent are looking to start as early as September. Given the flexibility to shop offline and explore wide range of products online, buyers are adopting a phygital mode to purchase commodities.

Given the industry observations, Indian consumers are successfully balancing their online and offline purchases. Online shopping is expanding at a faster rate each year as more people adopt technology, while simultaneously keeping a steady preference for in-person shopping.

The survey report claims that for online shopping, consumers prefer clothing and accessories, beauty products, home appliances and gadgets. Certain categories of products, however, will be purchased offline such as jewellery, automobiles, furniture and furnishing, since consumers believe the need to touch and feel is paramount.

For brands, the months leading up to holidays, particularly those centred around Dussehra and Diwali, are crucial because that is when the majority of shopping inquiries and purchases are made. It’s an opportunity to be seen, remain prominent in people’s minds, and inspire. There is a noticeable shift in 2023, with both online and offline means receiving a major preference for holiday shopping, as opposed to 2022, when purchasing preferences skyrocketed online amid significant sale seasons.