India’s e-commerce to break festive season record with $1 billion sales
16 October 2023, Mumbai
Great festive season 2023 shopping has begun in all earnest in India. The country’s economic health was reinforced by a recent Reserve Bank of India study which highlighted consumer spending that accounts for 60 percent of GDP proving its forecast for economic growth of 6.5 percent this fiscal.
In this robust spending spree, e-commerce platforms are rubbing their hands in glee as projections show not only will the dynamic economy see a splurge during the festive season but also a stable spending pattern next year.
E-commerce sales graph rising and how
As per the Ministry of Commerce’s estimates, the e-commerce market is projected to expand to $350 billion by 2030 from an estimated $63 billion in 2023. Bengaluru-based consultancy firm that specializes in monitoring 100 Indian e-commerce platforms which contribute nearly 90 per cent of India’s e-commerce sales says between October and November this year, Indians will be spending almost $1 billion, a record sales and 20 per cent more than last year. Amazon, Flipkart, Myntra, Ajio, Nykaa, Meesho, and Snapdeal –are in it to win it thanks to the enormous orders pouring in and they are recording a 15 percent increase in order volumes compared to last year within the first days of their festive sale campaigns.
E-commerce platforms are elated as the fear of inflation and higher interest rates are not dampening Indian consumers' spirit.
This is not surprising at all as according to RBI, consumer confidence touched a four-year high in September riding on stabilizing inflation and improving employment conditions.
Big guns are breaking their own records
The Great Indian Festival of 2023 has so far been the most lucrative of Amazon India’s festive campaigns with Vice President Manish Tiwary stating that this year witnessed the biggest start. Similarly, Flipkart’s Vice President Arif Mohammed went on record to say the festive season started phenomenally with seven to ten times more orders than the pre-festive season for garments, furniture and furnishing, domestic appliances, and electronics.
Readiness
Both retailers hired over 200,000 temporary workers to meet the rush and added over 300,000 new sellers, according to company officials.
The leader of India’s fashion e-commerce, Online Myntra’s Big Fashion Festival, popularly known as BFF saw a winning streak in not only its core but also emerging categories.
When the sale opened on October 7, millions of customers were shopping on Myntra, with equal weightage from metros and non-metros for festive purchases, with 45 percent being Tier II and III cities and about 10 percent from smaller places. The biggest sales were of kurta sets, lehengas, co-ordinated sets, shirts, jeans, and T-shirts. Myntra’s BFF 2023 is expected to yield 8 million shoppers, an increase by 2 million from BFF 2022.
Meesho’s Mega Blockbuster Sale 2023 also recorded a hit and seems to have made deep inroads in the country with 70 percent orders from Tier II, III, and IV cities.
Boom-time for delivery service providers
In anticipation of the Tsunami of festive orders, most e-commerce firms upped their delivery outreach by organizing delivery solutions for more customers living in non-metro areas. Gurugram-based supply chain management agency Prozo’s CEO Ashwani Jakhar was amazed that within the first two days of Amazon’s “Great Indian Festival of 2023” campaign 80 percent of deliveries were from Tier II and III cities and small retailers saw a 35 percent increase in sales compared to the festive sale of 2022.
Jhakar feels the e-commerce boom is a blessing for the logistics sector, providing small entrepreneurs the incentive to grow their businesses and generate a large number of jobs for the local youth.
