Holiday e-commerce sales to reach $12 billion, fast-paced commerce gains importance

3 minutes of reading Last update: Sep 24, 2024 | 11:52 AM IST

E-commerce companies and online retailers in India are bracing for a busy festive season, with $12 billion worth of goods expected to reach consumers during the holiday season, up 23 percent from last year’s $9.7 billion, a report said. Economic times citing the research company Datum Intelligence.

Quick commerce, a growing segment that promises fast delivery, is expected to contribute $1 billion in gross merchandise value (GMV) to holiday sales. GMV is the total value of goods sold on e-commerce platforms, excluding discounts and returns.

E-commerce platforms expect solid holiday sales

The festive season, which peaks around Diwali, is a critical time for e-commerce platforms, retailers and major brands. This year, platforms like Zomato-owned Blinkit, Swiggy Instamart, Zepto and BigBasket-owned BB Now are poised to capitalise on the high demand, especially in grocery and beauty and personal care (BPC) categories.

“Quick commerce is the standout this year,” says Satish Meena, advisor at Datum Intelligence. “In the grocery and BPC (beauty and personal care) categories, they will be the dominant players, driving down sales in modern retail markets and even kirana stores.”

Zepto is expanding its assortment, adding new categories such as electrical appliances, cosmetics and gift options. “We work closely with brands to create special offers for festivals,” a Zepto spokesperson said. The report predicts that fast-paced retail will account for 51 percent of online grocery sales this year, up from 37.6 percent last year.

Key Categories Driving Growth

According to a report by Datum Intelligence, this holiday season will be dominated by smartphones, large household appliances, mobile phones and fashion, which will account for around 50 percent of total sales.

E-commerce giants Amazon India and Walmart-owned Flipkart plan to kick off their annual holiday sales on September 27. Flipkart’s Big Fashion Festival on its subsidiary Myntra will start a day earlier while Meesho’s Mega Blockbuster Sale will take place on the same day.

“During the upcoming festive season, Flipkart customers can expect an enhanced in-app experience, including video commerce, immersive technologies such as augmented reality (AR) and 3D fitting rooms, and an expanded product selection,” said Harsh Chaudhary, Head of Business Development, Flipkart The Economic Times.

Logistics ready for the holiday rush

To cope with the surge in demand, Flipkart has launched 11 new fulfillment centers and created over 100,000 temporary jobs across over 40 regions. It is also increasing same-day and next-day deliveries across its growing network of cities. Amazon India has opened three new fulfillment centers in key regions to support its over 250,000 sellers and speed up deliveries.

Brands Expecting Big Growth

Brands across sectors are also bracing for a sales surge. Mattress and furniture brand Wakefit is forecasting double-digit growth, with sales rising 10 times over normal levels on key days. “Given the size of our core products, fast-paced retail isn’t yet optimized for items like mattresses and furniture,” says co-founder Chaitanya Ramalingegowda. However, they expect a significant contribution from smaller products like pillows and accessories.

Wearables and audio brand Boat is also bullish about the season. “Quick trade is the third-largest sales channel for the startup,” said Gaurav Nayyar, COO at Boat.

Meanwhile, snack brand Farmley is seeing fast-paced retail play a significant role in its holiday sales. “It opens up the market for us,” said co-founder Abhishek Agarwal.

First published: Sep 24, 2024 | 11:52 AM IST