Ecommerce sales in India are expected to grow by 18-20% to reach around $11 billion during the upcoming festive season, as per a report by market research firm Redseer. This growth rate is higher than the gross merchandise value (GMV) growth observed in the first half of the year. However, it is lower than the sales recorded during last year’s festive season. From January to July 2023, ecommerce platforms witnessed a modest increase of about 10% in comparison to the same period in 2022.
The festive season sales hold significant importance for ecommerce companies as they aim to generate a substantial portion of their annual sales during this period. Over the past decade, the Indian ecommerce industry has experienced a 20-fold increase in GMV and a 15-fold expansion in the annual transaction user base, reaching 230 million users in 2023.
Prior to their flagship Big Billion Days sale, Flipkart has been organizing a series of seller gatherings in major cities, including Delhi, Surat, Jaipur, Agra, Hyderabad, Bengaluru, and Kolkata. Amazon India also held its Smbhav seller meet last month ahead of its Great Indian Festival sale. The exact dates for the festive season sales by these marketplaces are yet to be announced, but they typically last for about 30 days, mostly in October.
The Redseer report states that at least 140 million shoppers will make online transactions during this festive season. It also highlights the diversification of ecommerce categories beyond electronics during festive sales. Categories like Beauty and Personal Care, Home and General Merchandise, and Fashion are expected to contribute more in terms of higher-margin sales. The report also predicts a greater presence of direct-to-consumer (D2C) brands and the use of new-age technology solutions like generative AI to enhance the overall consumer experience and drive robust growth during the sales period.
In conclusion, the anticipated growth in ecommerce sales during the festive season reflects the continuous expansion of the Indian ecommerce market. With increased adoption of new technologies and expanding product categories, companies are poised to capitalize on the festive sales period and engage a large number of online shoppers.
