Festive sales boost e-commerce to US$ 14 billion gross merchandise value (GMV) as tier-II+ cities lead growth
- IBEF
- November 18, 2024
India’s e-commerce sector saw a 12% YoY growth during the 2024 festive season, which ran from September 15 to October 31, recording a gross merchandise value (GMV) of approximately US$ 14 billion, according to a report by Redseer Strategy Consultants released on Thursday. This growth highlights changing consumer behaviour and greater contributions from smaller cities, particularly Tier-II+ regions. The report noted a slowdown in overall shopper growth. However, it indicated a 5-6% increase in per-shopper spending, signalling a maturing market. High-value products such as premium electronics and large appliances were in strong demand in metro cities. In contrast, affordable fashion and beauty products continued to drive frequent purchases in smaller towns, supporting sustained growth.
Key trends during the festive season included a decline in shopper growth but a rise in spending per shopper, reflecting deeper retail penetration. Smaller cities reported a 13% increase in spending, with discounts and promotions enabling customers in these regions to buy higher average selling price (ASP) items, boosting GMV. The fashion segment experienced significant growth, with ethnic wear, jewellery, and women’s accessories seeing strong demand, especially in Tier-II+ cities. Premium and international brands performed well in Tier-I cities, while direct-to-consumer brands benefited from enhanced digital visibility. Electronics, including air conditioners and large appliances, saw a surge in demand, particularly due to extended summer conditions. Quick commerce services expanded their offerings, meeting festive demand with extended delivery hours. Key cities like Delhi, Mumbai, and Bangalore led in non-grocery sales on festive days. Associate Partner at Redseer, Mr. Kushal Bhatnagar, commented that the growing spending power in Bharat (Tier-II+ customers) and quick commerce services are reshaping India’s online retail landscape.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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