India's holiday e-commerce sales may exceed $11.8 billion

According to foreign media reports, as India enters the peak holiday sales season, online sales in the holiday months are expected to reach US$11.8 billion, an increase of 28% over last year.

The festive month usually refers to the one-month period starting from the first sale and lasting roughly till Diwali week.

According to Redseer Strategy Consultants, online sales in India are expected to reach $5.9 billion during the first festive week, up 28% from $4.8 billion last year.

And, this year’s holiday season’s gross merchandise volume (GMV) is expected to triple compared to pre-pandemic online sales in 2018.

Sanjay Kothari, co-founder of Redseer Strategy Consultants, said: “We estimate that the number of online shoppers has grown nearly fourfold since 2018. This growth is driven by the country’s focus on developing internet penetration and soaring e-commerce penetration in tier II and III cities.”

Data shows that the participation rate of online shoppers during the holiday shopping season also doubled, from 18% in 2018 to 38% in 2022.

This year, the fashion category is expected to witness strong growth in sales due to increasing e-commerce penetration in tier II and III cities in India as first-time shoppers often tend to start their online shopping journey with fashion items.

In addition, consumer electronics merchants have launched a number of new products, coupled with large discounts, sales in this category are also expected to achieve strong growth.

“This is mainly due to the growing awareness of festive sales among shoppers, coupled with the growing reach of online shopping and a more diverse product selection, where consumers in large, medium and small cities can find affordable products,” Kothari added.

The report also mentioned that the significant increase in online sales during the holiday season will further boost online retail sales throughout the year. India's e-commerce sales were US$52 billion in 2021, and this figure is expected to reach US$68 billion in 2022.

India

E-commerce

festival