Online marketplaces sold goods worth $6.5 billion, or about Rs 55,000 crore, in one week of festive sales, a 26% rise over the previous year, with mobile phones, electronics, consumer durables, housing, and general merchandise accounting for three-quarters of total sales.
According to Datum Intelligence, sales in the week of September 26 accounted for around 55% of all ecommerce sales predicted over the holiday season this year.
On September 19, it was reported that ecommerce operators and businesses selling online are likely to generate $12 billion in gross merchandise value (GMV) this holiday season, up 23% from $9.7 billion last year. In ecommerce, GMV refers to the total sales made in an online marketplace.
According to industry experts, internet buyers, particularly those from smaller towns and cities, have started purchasing products with higher average selling prices (ASP), with many opting for EMI installments. Some brands expressed concern about supply concerns due to more demand than planned.
Walmart-owned Flipkart and Amazon India launched their annual festive season deals, Big BillionDays and Great Indian Festival, on September 27, with early access for Amazon Prime and Flipkart Plus users beginning September 26.
SoftBank-backed Meesho, which launched its Meesho Mega Blockbuster Sale on the same day, reported a 40% year-over-year rise in orders. This spike was fueled by significant demand from tier-II cities, with roughly 45% of customers hailing from tier IV and higher.
"Our first week was much better than expected, which means demand was front-loaded, indicating that many people planned their purchases to ensure everything arrived well in advance for the festivals," Meesho cofounder and CEO Vidit Aatrey said.
"I think it's just a very healthy set of demands across the country," the politician said.
Flipkart stated that it was focused on speedier deliveries across all pin codes while expanding same-day and next-day deliveries. "While major metro cities like New Delhi, Kolkata, Hyderabad, and Bengaluru continue to lead, we are also seeing strong demand from customers in tier-II+ regions like Medinipur, Hisar, Berhampore, Bankura, and Agartala, to name a few," a company executive said about its flagship The Big Billion Days program.
Over the last few years, a trend has emerged in which festive sales begin earlier, ahead of Navratri--despite concerns that consumers may postpone purchasing during 'Shradh'--a 16-day period (from September 17 to October 2 this year) when many Hindus honour their ancestors by refraining from making purchases.
Brands and marketplaces have frequently reported being surprised by the high demand during this period.
According to Satish Meena, consultant at Datum Intelligence, the first week of the ecommerce festive sale saw sales of around Rs 50,000-55,000 crore ($6-6.5 billion).
"The start was extremely fast... However, in the last day or so, we noticed things slowing down," he remarked. "It's typically like this, almost 55-60% spending happens in the first period (and) then the focus moves towards the lower average selling price (ASP) category."
"There will be one more wave between Dussehra and Diwali," Meena added.
Quick commerce uptick
This year, quick-commerce sites such as Zomato-owned Blinkit, Swiggy Instamart, Mumbai-based Zepto, and BigBasket's BBNow are all competing for a share of the holiday season sales.
"In terms of ecommerce and rapid commerce platforms, while it is difficult to make direct comparisons because they serve different customer needs, both have shown great promise. Quick commerce, in particular, is experiencing exponential development due to ease, with more consumers electing to make spontaneous, on-the-go purchases for gifting or last-minute needs, particularly in categories such as wearables and audio items," Noise's Khatri stated.
Over the last few quarters, quick delivery platforms have expanded into a variety of new sectors beyond groceries and fast-moving consumer products. According to CEOs, lower-ASP categories such as grocery, beauty and personal care, and general items are driving growth in this area over the festive season.
