Festive season online sales will grow by 28% this time to reach $11.8 billion, says Redseer | The Financial Express

Festive season online sales will grow by 28% this time to reach $11.8 billion, says Redseer

The festive month generally starts from the first sales event and lasts roughly till Diwali week, including non-sale or business-as-usual days in between. Compared to pre-pandemic sales in 2018, the report is projecting around 3X growth in online festive sales GMV this year.

Festive season online sales will grow by 28% this time to reach $11.8 billion, says Redseer
In the first week itself, the sales are estimated to reach $5.9 billion.

Online sales are expected to register a 28 per cent year-on-year growth to reach $11.8 billion during the festive month. In the first week itself, the sales are estimated to reach $5.9 billion, projecting a 28 per cent increase from $4.8 billion last year, said a report by Redseer Strategy Consultants. The festive month generally starts from the first sales event and lasts roughly till Diwali week, including non-sale or business-as-usual days in between, according to Redseer. Compared to pre-pandemic sales in 2018, the report is projecting around 3X growth in online festive sales GMV this year.

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Increase in takers for online commerce

E-commerce is becoming mainstream now with 4X growth in the number of online shoppers from 2018. “This growth has been driven by accelerated digital adoption and increasing penetration in tier-II cities. We expect this expanded customer base to reflect in higher sales during the festive sales period as well,” said Sanjay Kothari, Associate Partner, Redseer Strategy Consultants. Also, participation of online shoppers during the festive week (those who shop during festive sales) has doubled from 18 per cent in CY18 to a projected 38 per cent in CY22. This is courtesy a number of factors like increasing awareness of the festive sales, growing reach and targeted selection for shoppers across city types, expansion of products within the affordability range for shoppers across city types, rise of new e-commerce models such as video commerce, etc., said the report.

Categories driving sales

This year, the fashion category will see strong growth driven by an increasing shopper base from tier-II and beyond towns and first-time shoppers who generally tend to begin their online shopping journey with fashion. This will also be led by growth in participation of fashion led players in the festive sales this year. Further, mobiles and electronics category will remain ‘broadly strong and key during the festive sales’, driven by better deals and new launches. The growth in festive sales will further push the overall online retail GMV (Gross Merchandise Value), which stood at $52 billion in 2021, to grow by 30 per cent to reach $68 billion in 2022, said the report by Redseer.

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