India’s e-commerce sales are projected to reach between ₹1 lakh crore and ₹1.2 lakh crore in gross merchandise value (GMV) this festive season, driven by strong pent-up demand and a trend towards premiumization, according to a report from Redseer Strategy Consultants. This represents a 20% year-on-year growth for the sector.
Key categories like mobiles, electronics, and fashion are poised for significant growth, while other sectors such as beauty, personal care, home goods, and quick-commerce grocery are expected to see over 25% growth due to improved business-as-usual performance.
Kushal Bhatnagar, Associate Partner at Redseer, emphasized that mobiles and electronics will be crucial for value and growth this season, as consumers are responding positively to affordable options that make premium products more accessible. Sellers and platforms have the opportunity to capitalize on this pent-up demand by optimizing pricing and selection.
Brands are strategically leveraging e-commerce platforms to meet the needs of aspirational customers, particularly in tier 2 cities and beyond. Many are planning to offer attractive discounts and promotions during large-scale festive events to draw in customers.
This season, there is a focus on pushing premium stock keeping units (SKUs) at discounted prices to stimulate aspirational purchasing. Additionally, quick commerce, which gained traction in 2023, is expected to contribute about 8% to overall e-commerce growth, an increase from 5% last year. Emerging categories like home and kitchen appliances are anticipated to perform well on quick commerce platforms, potentially boosting average order values and profitability.
