According to Datum Intelligence, nearly 60% of buyers plan to spend over ₹15,000 during this festive season. As the festive shopping period kicks off, major e-commerce platforms such as Flipkart, Amazon, Myntra, and Meesho have reported strong initial sales. Datum Intelligence, a market research firm, collected sales data from September 26, marking the start of this year’s flagship sales.
A Key Period for Retailers
The festive season, which begins at the end of September and leads up to Diwali, is crucial for retailers, as it generates a significant portion of their annual gross merchandise value (GMV). Notably, 60% of the total festive GMV typically occurs in the first week. This year, e-commerce firms are projected to achieve a GMV of ₹1,00,000 crore, with ₹26,500 crore recorded in just the first three days, largely driven by sales in mobile phones, electronics, and consumer durables, which accounted for 79% of sales.
Driving Factors Behind Demand
The rise in consumer spending has been aided by easier credit options, enabling customers to make significant purchases. Flipkart reported an impressive 33 crore (330 million) visits during the initial sale days, with promising trends across various categories, including mobiles, electronics, and home products.
Premiumization and Fashion Trends
This year, there is an evident trend toward premiumization, indicating an increased demand for products that enhance lifestyles. Meesho, known for its budget offerings, saw its premium segment, Mall, experience a 2.5X growth in orders compared to last year, with 45% of those being first-time shoppers. Meanwhile, fashion remains a leading category, with Myntra reporting a 15X increase in new users during the sales.
Expanding Market Reach
While metro cities remain the primary markets, accounting for 55-60% of total sales, Tier 2 cities and beyond, such as Medinipur, Hisar, and Agartala. contributed to 40-45% of sales this year. This shift underscores changing consumer behaviours as more buyers from diverse regions engage in online shopping.
Rapid Delivery Changing the Game
As quick commerce gains traction, e-commerce giants like Flipkart are leveraging rapid delivery services to boost sales. In cities like Mumbai, Flipkart Minutes accounts for 25% of all electronics sales, while in Delhi, that number rises to nearly 40%. This shift allows customers to purchase larger items like laptops and computers more conveniently, demonstrating the evolving landscape of online shopping.
The festive season is proving to be a robust period for e-commerce, with significant growth in spending and changing consumer preferences. As retailers adapt to these trends, they are well-positioned to meet the demands of an expanding market, making this year’s festive sales an exciting time for both buyers and sellers.
