By Suman Patra
With the arrival of days-long regional festivals, the Indian gifting industry is set to witness an unprecedented boom. The market currently boasts a considerable size of $30 billion, with e-commerce platforms emerging as a key player, contributing to market growth in recent years. The convenience and comfort of online shopping and the appeal of grabbing exclusive limited-time deals are the two prominent factors relating to consumers’ changing purchasing habits during the festival period.
The boost in consumers relying on e-commerce platforms suggests that they now expect smooth and effortless shopping experiences across online and offline channels. With the integration of an Omni channel strategy, retailers can bridge this gap between digital and physical space. Even offline stores are bound to reach a potential growth of 20%. Hence, employing an Omni channel approach becomes critical for brands to cater to the rising demands of consumers during this period.
A study by Redseer Strategy Consultants suggests that India is expected to witness an increase of 18–20% in online shopping during the festive season. Owing to 14 crore enthusiastic online shoppers, this surge is anticipated to result in INR 90,000 crore worth of Gross Merchandise Value (GMV). A considerable portion of this increase in value is driven by the sale of high-value products such as smartphones and appliances.
According to a recent report by Axis My India, 23% of consumers are looking forward to increasing their shopping activities during the festive season. Interestingly, Tier 2 and Tier 3 regions are also showing promising growth for online platforms. A major e-commerce player reported that 80% of its sales alone during the festive season were from small towns, which brought about 40 lakh new consumers for the brand.
In addition to this, the quick commerce industry in India is also gaining momentum as the festive season approaches. The augmentation of quick commerce is bringing a paradigm shift in consumer behaviour in terms of moving from traditional marketplaces to quick commerce transactions. According to the TeamLease report, the quick commerce industry is poised to witness an increase of 35% in sales during the holiday season. Major players in the sector are planning to hire more professionals to meet the rising demand for goods and to ensure smooth operations.
From beauty products to electronics and home decor items to the trendiest apparel, consumers are bombarded with multitudes of deals across different e-commerce and quick commerce platforms during the festive season. These discounting features create a sense of urgency and excitement in the minds of consumers and also implant a feeling of missing out on the greatest deals they could possibly get, which ultimately results in higher sales.
With high demand, the cash on delivery orders also increases, which can lead to a higher RTO (return to origin). However, by offering special payment discounts such as 10–20% off on the product by paying through debit or credit cards, brands can ensure a constant cash flow, curbing this issue as well.
In a country where celebrations are high-spirited and gifting is a vital part of the culture, e-commerce brands are presented with the golden opportunity to leverage this festive fervour and increase their sales. In India, they do not just serve as a marketplace but also as a catalyst for exponential economic growth. The peak season is not just a period for e-commerce platforms to heighten sales but also for developing enduring consumer relationships, strengthening brand loyalty, and making a profound impact in the minds and hearts of customers.
The author is co-founder, FlowerAura and Bakingo
(Views expressed are the author’s own and not necessarily those of financialexpress.com)