India’s festive season is set to ignite a major boost for the country’s e-commerce sector, with sales expected to reach Rs 100,000-120,000 crore in Gross Merchandise Value (GMV), according to an analysis by Redseer Strategy Consultants. The latest analysis forecasts 20 per cent Y-o-Y growth, fuelled by high pent-up demand and a premiumisation wave.
Redseer’s study indicates that the combination of rising consumer confidence, high pent-up demand, premium product promotions, and the growing influence of quick commerce will drive significant growth for India’s e-commerce sector this festive season.
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“As brands look to capitalise on the festive demand, many are strategically leveraging e-commerce platforms to cater to aspirational customers’ needs and reach the relatively less accessible tier-2+ customers,” said Kushal Bhatnagar, associate partner at Redseer Strategy Consultants. “As a result, they look to partner deeply with the leading platforms to attract customers via lucrative discounts and offers available in the large-scale festive events.”
The festive season is likely to help the big three of e-commerce (i.e., mobiles, electronics, and fashion) gain momentum, given that their performance this year has been slightly subdued. Other categories (beauty and personal care, home, and q-commerce-led grocery) have had better business-as-usual performance and will see an incremental upside, taking their festive growth figure to north of 25 per cent.
“Mobiles and electronics remain key value and growth drivers this festive season, especially as consumers respond to affordability options that make premium products more accessible,” said Bhatnagar of Redseer.
Amazon
The Amazon Great Indian Festival (AGIF), which started on 27 September with 24-hour early access for Prime members, has seen the biggest ever opening for its sellers and brand partners on Amazon. The company said the first 48 hours of AGIF 2024 have been the best ever, with nearly 11 crore customer visits and over 8,000 sellers surpassing Rs 1 lakh in sales. Customers got access to more than 25,000 new product launches across categories such as laptops, TVs, fashion and beauty, home décor, appliances, furniture, smartphones, and groceries from top brands.
The highest ever number of Prime members shopped during the first 24 hours of AGIF 2024 (Prime Early Access), with more than 140 per cent more members shopping during this time and purchasing 8X more than average daily purchases. More than 3 lakh unique products, including smartphones, beauty products, apparel, everyday essentials, and more, were delivered on the same day or the next day.
AGIF 2024 witnessed demand from tier-II and tier-III cities, across key categories, including appliances, fashion and beauty, smartphones, and furniture from popular brands. Amazon also recorded more than 40 per cent growth in No Cost EMI transactions. Here, 90 per cent of all EMI purchases for mobiles, washing machines, TVs, refrigerators, ACs, and video games (including PS5) are through No Cost EMIs.
“The first 48 hours of Amazon Great Indian Festival 2024 have been historic and the best ever for Amazon,” said Saurabh Srivastava, vice-president – categories, Amazon India. “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 (Prime Early Access).”
Myntra
E-commerce firm Myntra is also hosting the Big Fashion Festival. With 120 million visitors during Early Access and Day 1, Myntra witnessed customers exhibiting high shopping intensity across core fashion and emerging categories. At the kick-off of the sale event, Myntra witnessed 15X new users over business-as-usual (BAU) joining the platform, and a 2X spike in OPM (orders per minute) at peak compared to last year, in the opening hour of the event.
“The Big Fashion Festival saw a 4X rise in orders over BAU on the opening day of the event, along with 5.5X more Insiders (members of Myntra’s loyalty programme) over BAU shopping during the first two hours of Early Access,” said Neha Wali, head of revenue, Myntra. “We are also seeing notable demand from both metros and non-metros, with approximately 45 per cent of orders coming from tier-2 and tier-3 cities and beyond.”
Flipkart
E-commerce firm Flipkart recorded 33 crore user visits during Early Access and Day 1 combined, during the 11th edition of the company’s The Big Billion Days (TBBD) 2024 sale event. The BBD was held on 27 September, with early access beginning on 26 September for Flipkart VIP and Plus customers.
“Some of the early trends indicate an increase in demand for categories that enable a lifestyle upgrade, and tier-II+ cities have been showing growth in the run-up to this year’s festive season,” said Harsh Chaudhary, vice-president – growth, Flipkart.
First Published: Sep 30 2024 | 8:39 PM IST
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