The festive season in India is more than just lights and sweets; it’s the best time of the year when people finally make those long-awaited purchases, drawn by jaw-dropping discounts and other offers. This year, e-commerce platforms such as Flipkart and Amazon set new records, achieving an astounding ₹1 lakh crore ($11.9 billion) in Gross Merchandise Value (GMV) of goods sold during their month-long festive sales. That’s an impressive 23.5% YoY surge in GMV, driven primarily by the success of flagship events like Flipkart’s Big Billion Days and Amazon’s Great Indian Festival.
It’s worth noting that approximately 55% of the total GMV was generated within the first week of the festive season sale, amounting to Rs 55,000 crore ($6.5 billion).
Interestingly, a large chunk of this year’s shopping boom came from non-metro cities in India. Amazon reported that over 85% of its customers came from these areas, highlighting the growing digital penetration and increasing purchasing power beyond major urban centres.
“There was increased demand from tier II-III and beyond, reflected across categories including smartphones, television sets, appliances and fashion,” Satish Meena, adviser at Datum Intelligence, told ET.
Smartphones Dominate Yet Again
The demand for smartphones in India shows no signs of slowing down anytime soon. Consumers are always on the lookout for great deals to upgrade their devices, and this year has been no exception.
As new smartphones from Apple, Samsung, Vivo, etc., packed with 5G, foldable designs, and AI-powered features, these premium devices are leading the charge in the country’s shift toward “premiumization.”
Smartphones emerged as the hottest-selling category, accounting for nearly 65% of all online sales during the recent sales season. Both Flipkart and Amazon reported that smartphones topped their sales charts, reflecting India’s growing appetite for advanced, premium devices that keep pace with the latest innovations.
Flipkart saw an impressive 17% YoY surge in demand for premium devices, while Amazon achieved its highest YoY growth in sales for models priced above Rs 30,000. Notably, over 70% of these premium smartphone sales on Amazon came from Tier II cities and beyond, reflecting the increasing purchasing power in smaller cities.
The demand for premium items extended well beyond smartphones. Amazon reported a 30% increase in premium large appliance sales and an extraordinary 400% spike in premium fashion and beauty categories. This growth was driven by watches, fragrances, K-beauty products, jewellery, handbags, sportswear, luggage, and kids’ wear.
D2C Brands Shine with Record-Breaking Sales
Amazon reported that direct-to-consumer (D2C) brands experienced remarkable growth during the festive season. Demand for categories such as beauty, footwear, apparel, and luggage increased by an eye-popping 700% YoY.
In particular, Wakefit recorded over 50% growth in revenue, while personal care brand Pilgrim saw 40-50% growth on marketplaces and a 50% increase on its own channel.
Meesho’s ‘Mega Blockbuster Sale,’ held from October 6 to 15, 2023, witnessed 120 crore customer visits. Categories such as Home & Kitchen, Fashion, and Beauty & Personal Care saw high demand, with over 72 orders placed per second. Remarkably, 80% of the orders came from tier II and III cities, such as Amravati, Aurangabad, Dehradun, Nellore, Solapur, and Warangal.
Meanwhile, quick commerce platforms such as Blinkit, Zepto, and Swiggy Instamart also exceeded expectations this festive season, generating approximately $1.1 to $1.2 billion in GMV. Although these platforms often face criticism for their business models, it’s clear that the convenience of quick commerce is winning over a growing base of consumers who value speed and accessibility.
In a nutshell, the 2024 festive season sale on Amazon, Flipkart, and other platforms was a tremendous success, with record-breaking sales and revenue. This achievement reflects India’s evolving consumer shopping behaviour and rising purchasing power, particularly among consumers in non-metro areas. And this shopping frenzy isn’t over yet! December brings another opportunity with the “End of Season Sale” for the New Year, offering consumers a chance to indulge in more shopping with huge discounts and attractive offers.
