Festive e-commerce sales in India have seen a remarkable 23-25% year-on-year growth in the first two days of major online shopping events. Platforms like Amazon, Flipkart and Meesho reported record-breaking demand, marking one of the strongest years for online retail.
Macroeconomic Tailwinds Fuel Spending
A report highlighted that multiple macroeconomic factors contributed to the surge, including repo rate cuts, higher disposable incomes, rising rural affluence and pent-up demand across appliances, fashion and home categories.
E-commerce giants timed their flagship sales with the new GST slabs, aiming to pass savings directly to consumers:
- Flipkart's Big Billion Days and Amazon's Great Indian Festival kicked off earlier this week.
- Meesho launched its Mega Blockbuster Sale last weekend.
Amazon revealed that over 380 million customers participated during the first two days, with more than 70% from beyond the top nine metros, reflecting growing penetration into tier-2 and tier-3 cities.
Premium Products Lead Growth
Premiumization drove much of the sales surge:
- Smartphones above Rs 20,000 grew 50% y-o-y.
- QLED TVs sales jumped 23%, while Mini-LED TVs grew 27% y-o-y.
- MacBook Air M4 sales surged 94 times compared to regular days.
- Air conditioners, dishwashers, and inverter batteries also saw double-digit growth, benefiting from reduced GST rates.
Flipkart reported that iPhone 16 emerged as the top-selling item during early access on Flipkart Minutes, highlighting strong demand for premium products. Meesho, meanwhile, saw around 240 million visitors over its opening weekend, placing approximately 29,000 orders per minute.
Record Festive GMV Expected
According to sources, this year's festive e-commerce sales are expected to generate over Rs 1.15 lakh crore in gross merchandise value (GMV), growing 20-25% y-o-y, nearly double the 11% growth recorded last year.
Pratik Shetty, Vice President of Growth and Marketing at Flipkart, said: "Shoppers who had been holding back purchases are returning with confidence and early trends already reflect a double-digit surge in demand."
The combination of GST-led price reductions, festive timing and premiumization appears to be driving one of the most successful online shopping seasons in recent years.
CAclubindia
