New Delhi . The festive season was a great one for ecommerce platforms with private consumption and demand rising in India's smaller cities and towns. According to a latest report, with the increasing trend of premiumization, ecommerce platforms have recorded gross merchandise value (GMV) of more than Rs 1 lakh crore in the monthlong festive season.
According to industry data, this is an increase of over 20 per cent from last year's festive sales on major ecommerce platforms in the country. The first week of festive sales, which began on September 26, alone saw a turnover of Rs 55,000 crore, which is almost half of the total sales.
Ecommerce consultancy Datum Intelligence has estimated a growth of over 23 per cent in sales this festive season.
Mobile, electronics and fashion categories gained momentum, while other categories like beauty and personal care, home and quick commerce led grocery witnessed better business as usual (BAU) performance.
Quick Commerce has outperformed since 2023. This time, Quick Commerce has contributed about 8 percent to the overall ecommerce growth, which was 5 percent last year.
Smartphone sales were highest during the festive season, with online sales accounting for about 65 percent of smartphone purchases. There was a surge in demand for premium brands.
Cities in Tier 2 and beyond contributed more than 70 percent of premium smartphone sales for Amazon.
More than 85 percent of customers came from nonmetro cities and more than 50 percent of TV purchases came from tier 2 and 3 cities.
According to Amazon India, demand for large appliances from Tier 2 cities increased by 25 percent, with customers preferring air conditioners and refrigerators.
The brand also tried to meet the needs of many ambitious customers in view of the festive demand. As a result brands managed to reach and profit from underpenetrated customers in Tier 2 cities and beyond.
New categories like home and kitchen appliances took hold on the Quick Commerce platform, helping the platform increase its average order value and profits.
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Image Credit: KhasKhabar.