Surge in Online Retail Sales Marks Festive Season Kickoff in India
The initial days of this festive season witnessed a remarkable surge in online retail sales in India, escalating by 32-35%. This spike can be attributed to the implementation of GST 2.0, accompanied by substantial discounts offered by dominant e-commerce platforms, notably Amazon India and Flipkart.
The flagship sales events by these giants, namely Amazon’s Great Indian Festival and Flipkart’s The Big Billion Days, commenced early for their loyalty program members.
The demand landscape was dominated by smartphones, televisions, and various appliances, with sales soaring by 30-40% compared to the same period last year. Other categories also performed admirably, with mattresses seeing a 25% increase, beauty and personal care products rising by 19%, and fashion items up by 17%, as reported by the consultancy firm Datum Intelligence.
This pronounced demand for smartphones during the festive sales serves as an essential indicator, given that sales in this segment have been rather lethargic prior to the festival.
“Preliminary observations indicate a growth of 32-35% in overall sales value during the initial two days of the e-commerce festive sales season compared to last year,” stated Satish Meena, founder of Datum Intelligence.
“This uptick follows a significant two-week decline in sales prior to the announcement of GST cuts.” For context, the previous year experienced a growth of only 20-25% during the same timeframe.
Sellers and brands had reported a marked deceleration in consumer spending in the weeks leading up to September 22, as buyers awaited the rollout of reduced GST rates, which subsequently led to more attractive pricing.
The significance of this year’s sales is magnified, considering the inconsistent growth patterns in the past few years, coupled with an increasing consumer preference for expedited deliveries.
Previous projections had suggested that e-commerce marketplaces and online retailers were poised to distribute goods worth approximately Rs 1.2 lakh crore during this festive season, reflecting a 25% increase from 2024.
The newly implemented GST reduction is anticipated to further bolster this figure beyond 30%, according to earlier reports from ET.
Amazon India recorded a significant double-digit growth in the value of premium smartphones sold during the early access phase for Prime members, alongside an almost twofold increase in the sales of high-end appliances.
“This trend of premiumization has extended beyond metropolitan areas into tier II and tier III cities,” remarked Saurabh Srivastava, Amazon India’s Vice President of Categories.
Additionally, the e-commerce titan has launched a dedicated storefront page showcasing products that offer GST savings across various categories for consumers.
Brands Flourish Amidst Festive Sales
Shadow Etail, an online seller specializing in garden supplies, homeware, and cleaning products on both Amazon and Flipkart, reported a commendable 25% year-on-year growth in sales on the first day compared to September 26, 2024, which marked the commencement of last year’s events.
“We have noted a surge in traffic and sales on e-commerce this Tuesday as it opened to all consumers. Each category is contributing significantly to overall sales driven by the GST cuts and the conclusion of the Shradh period,” stated Santhosh Balasundaram, CEO and founder of Shadow Etail.
Similarly, Etrade Online experienced a spike of 30-40% in sales for lawn products, dashcams, homeware, and pet food on Tuesday compared to the first day of last year’s sales.
Beauty and wellness brand Nat Habit achieved double the sales compared to last year, bolstered by repeat purchases and larger transaction sizes. Co-founder and CEO Swagatika Das noted, “Since extending discounts to all customers, we have witnessed a notable increase in sales volumes, characterized by heightened repeat purchases and larger basket values.”
Source link: M.economictimes.com.
