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India e-commerce sales to reach up to Rs 1.2 lakh cr in GMV this festive season
Driven by high pent-up demand and premiumisation wave, e-commerce sales in India are estimated to reach Rs 1 lakh-Rs 1.2 lakh crore in gross merchandise value(GMV) this festive season, a report said on Monday.
Bengaluru : Driven by high pent-up demand and premiumisation wave, e-commerce sales in India are estimated to reach Rs 1 lakh-Rs 1.2 lakh crore in gross merchandise value(GMV) this festive season, a report said on Monday.
This will be 20 per cent year-on-year growth for the e-commerce sector, according to the report by Redseer Strategy Consultants.
Mobiles, electronics and fashion categories are set to gain momentum while other categories (beauty and personal care, home and quick-commerce-led grocery) have had a better business as usual (BAU) performance and will see an incremental upside, “taking their festive growth figure to north of 25 per cent,” the report mentioned.
According to Kushal Bhatnagar, Associate Partner at Redseer, 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.
“Moreover, sellers and platforms have potential to unlock the pent-up demand in the category by optimising for pricing and selection,” Bhatnagar added.
As brands look to capitalise on the festive demand, many are strategically leveraging e-commerce platforms to cater to the aspirational customers’ needs and reach the relatively less accessible customers in tier 2 cities and beyond.
“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,” he said.
This festive season, brands are looking to push premium stock keeping units (SKUs) at a discounted price, to encourage aspirational buying.
Quick commerce, which saw significant traction in 2023, is set to contribute approximately 8 per cent to overall e-commerce growth, up from 5 per cent last year.
Newer categories such as home and kitchen appliances are likely to get pushed aggressively on quick commerce platforms and could also help the platforms to boost their average order values and profitability, the report mentioned.
