India's eCommerce industry is going to witness a new record of 20-25% sales growth this year. Business Insider has predicted a figure of 1.2 lakh crore as a closing figure for 2024's festive season. ET specifically mentioned 23% growth compared to last festive season. And just like previous years’ festive seasons, the two winning categories will be mobile/electronics and fashion items. So, it is good news for all the sellers, especially for those who are on all eCommerce platforms of India and they can expect a decent profit in their pockets once this festive season ends.

India’s Festive Season

India's festive season starts with Navaratri (the grand celebration of 9 days), followed by Dussehra. During this time, companies start grand sales, such as big billion-day sales or great Indian festival sales. Then, there is an even bigger sale during Diwali which lasts till Bhai dooj.

After this, there is slightly a lean season in terms of such grand sales – the next big sale event is Christmas and New Year sale – which lasts for 2-4 weeks. It is like a year-end sale sometimes for stock-clearance. Overall, it is a 30-50 day sale period.

Consumer Behavior During Festive Season

From October to December (January mid sometimes), Indians go through a shopping spree. They have no options other than shopping during this time of year – they need products for personal usage as well as for gifts. Not just products, they need services too during this period.

Buyers, literally wait for this time - they even add products to their carts before the sale starts to avoid missing out on the deals. Their strategy is simple – they want the best products at the best price. They are also ready to make early purchases so that they get on-time delivery.

How Do eCommerce Companies Assist the Sellers?

Sellers (selling any consumer goods) or service providers have a chance of maximum sales during this festive time. eCommerce companies are nothing but the platforms that ease the task of maximizing the profits for the sellers. These platforms are already very popular among the customers – so, the sellers get the chance to showcase their products among that huge population. It thereby amplifies the possibility of purchase which will bring profit to the sellers.

With celebrity endorsements, social media promotions, ad campaigns, etc. these eCommerce platforms take these festive sales to a new height. Customers, unless they need anything urgently, postpone their purchase till the festive season. Festive season fever is such strong in India.

Flipkart had 330 million visits combined on early access day and a big billion sale day 1 – it was open only for Flipkart VIP, and Flipkart Plus buyers.

Business Standard reports:

1. 70% higher visits, 2.8x increase in transactions, and 2-3x sales growth in different categories on Shopsy
2. 25x growth in live commerce compared to the pre-festive period
3. 2.5x user growth on Cleartrip
4. 3-4x increase in hotel and ticket bookings
5. 3x orders every day on Meesho, along with 1.5 crore app downloads
6. Amazon had 20% growth

Popular brands had multifold growth:

1. Mamaearth recorded 5x orders
2. Denver received 8x growth
3. Swiss Beauty saw 7.5x overall growth
4. Bella Vita had 17.5x growth
5. Mars saw 4x growth

This growth is a sign that consumers have a steady income that allows them to spend like this. The graph below shows a decent growth in festive sales over the years:

How Does 2024’s Festive Season Look Like – Detailed Prediction Of Ecommerce Sales Growth

As per the predictions, there will be a 20% year-on-year growth in the gross merchandise value (GMV) which is again a record. Beauty/personal care products and home décor/improvement items will come right after mobile/electronics and fashion items with a 25% sales growth, even though these products are available on quick commerce platforms now.

During the festive season, premium products of popular brands are available which are not always accessible in brick-and-mortar stores of tier 2-3 cities and towns. Also, the products are beyond the budgets of these people in normal times. Festive sales frees them from all these bindings. The festive deals bring smiles to their faces. After the lockdown, the festive season is slowly gaining momentum and in the next years, it will increase even more.

The Future Of Festive Sales - Further Growth in eCommerce

This year's number is a clear indication that the next festive seasons will be even brighter than this. Other categories like kitchen items, home appliances, etc. will have remarkable growth not just in the metro cities, but also in all corners of India. This year towns like Agartala, Bankura, Berhampore, Hisar, and Medinipur saw a demand for Western wear, branded footwear, etc. even though there are big shopping malls. Sellers will surely get multifold growth from all cities, towns, and villages. By integrating a payment gateway, Indian eCommerce companies can ensure a smoother payments on the coming days.