Indian Online Festive Season Sales Can Reach $12 Billion in 2024, Report Suggests

According to market research firm Datum Intelligence, ecommerce companies and online merchants are estimated to ship $12 billion in items to Indian consumers this festive season, a 23% increase from $9.7 billion last year.

Quick commerce may contribute for $1 billion in ecommerce sales in terms of gross merchandise value (GMV), according to the analysis. GMV refers to the total value of items sold on ecommerce platforms, excluding discounts and returns.

Ecommerce platforms, vendors, and major brands are bracing for strong sales during the holiday season. This two-month period, which culminates with Diwali, often generates a large amount of money for ecommerce companies and other businesses.

Related: Amazon India’s Festive Season Boost: 1.1 Lakh Seasonal Jobs Created

This year, quick-commerce sites such as Zomato-owned Blinkit, Swiggy Instamart, Mumbai-based Zepto, and BigBasket’s BB Now are gearing up for a jam-packed Diwali, hoping to gain a larger market share.

“Quick commerce is a standout feature this year. It’s unlikely that there will be many non-grocery, non-BPC (beauty and personal care) purchases. However, in this category, they will be the dominant player,” stated Satish Meena, an advisor at Datum Intelligence. And this is not only cutting into the sales from the marketplace of modern trade, but it will cut sales from the kirana stores also.”

Zepto said its vendors had expanded inventory with new categories for the holiday season, including electrical appliances, beauty goods, and even giving choices like plants, in addition to its main categories of kitchen appliances, personal care, and gift packs. According to a Zepto spokeswoman, the company collaborates with advertisers to create festival-specific discounts.

Grocery, beauty, and personal care are likely to drive growth, with quick commerce accounting for 51% of online grocery transactions vs 37.6% last year, according to the research.

Sales of smartphones and major appliances during the holiday season can account for up to one-third of an ecommerce platform’s annual income.

According to the Datum Intelligence research, mobile and fashion will account for half of overall sales throughout the holiday season.

“The premiumisation trend, which began last year, will continue this year. Last year, premiumization was observed in the smartphone category,” stated Meena.

Ecommerce leaders Amazon India and Walmart-owned Flipkart will begin their annual festive season sale on September 27 and will last for around one month. Meesho, a SoftBank-backed ecommerce startup, will launch its Meesho Mega Blockbuster Sale on the same day. Flipkart-owned apparel portal Myntra will kick off its Big apparel Festival a day earlier.

“For the upcoming festive season, Flipkart customers can expect enhanced on-app experiences including video commerce, immersive immersive technologies like AR and 3D try-ons, and an expanded product selection across a wide range of categories,” said Harsh Chaudhary, director of growth at the provider.

According to a Datum Intelligence survey, customers in small cities are starting their purchases early to assure prompt delivery of their products. During the peak of the holiday season, delivery times in non-metro markets are typically lengthier.

“Millennials account for 60% of our customer base, and they have a huge impact on our platform’s shopping trends. Their favorite categories are fashion, home and kitchen, BPC, technology accessories, and office and stationery.” Meesho’s spokesman stated that popular searches include smartwatches, water bottles, ready-to-wear sarees, shoe racks, nail varnish, and lunch bags.

In the run-up to this year’s holiday season, Flipkart has opened 11 fulfilment centers and created over 100,000 new temporary jobs in over 40 locations. It is also expanding same-day and next-day delivery options throughout an increasing number of cities.

Amazon opened three new fulfillment centers in the National Capital Region, Guwahati, and Patna to improve delivery times, service over 250,000 sellers, and generate jobs. Amazon India has no comment.

“Quick commerce is a fascinating space. It undoubtedly serves a role for certain customer categories. However, the Amazon model concentrates on delivering to all serviceable pin codes in India, especially as the festival season approaches, which affects everyone, not just those in large cities or high-density areas. We want customers across the country to have access to bargains, a diverse product offering, and scalable speed,” said Saurabh Srivastava, Amazon India’s vice president of categories.