India's festive e-commerce sales to reach ₹1.2 lakh cr

Chennai: The festive season consumption through the e-commerce channel this year is expected to be between Rs one lakh crore and Rs 1.2 lakh crore – clocking 20 per cent growth over last year. Organised retail expects the pent-up demand to result in 8-10 per cent growth during the festive season, while the unorganised retail has pinned its hopes on the weddings during the season, which is expected to generate a business of Rs 5.9 lakh crore.

Propelled by biggies like Amazon and Flipkart, e-commerce players are expected to corner Rs 1 lakh crore to Rs 1.2 lakh crore of festive season business this year, against Rs 80,000 – 90,000 crore of sales clocked last year, finds RedSeer Consultants.

Mobiles, electronics, and fashion are set to gain momentum as their performance this year has been slightly subdued. Quick commerce is set to contribute 8 per cent to overall e-commerce growth this season, up from 5 per cent last year.

Rising consumer confidence, high pent-up demand, premium product promotions and growing quick commerce, will drive significant growth for India’s e-commerce sector this festive season, said Kushal Bhatnagar, Associate Partner at Redseer.

According to Amazon, the first 48 hours of its festive season sales saw nearly 11 crore customer visits and over 8,000 sellers surpassing Rs 1 lakh in sales. Flipkart recorded over 33 crore user visits on its platform during the combined Early Access and Day 1 of the ‘Big Billion Days’. Myntra has drawn 12 crore visitors during Early Access and Day 1.

The organised retail chains too expect the pent up demand from the past few months to translate into better festive season sales. According to Kumar Rajagopalan, CEO of Retailers Association of India, at 3-5 per cent, sales growth in the last four months did not meet trade expectations. “Housing, auto, stock markets and travel have been grabbing a large share of consumers’ wallets. Inflation pressures were seen among those in the bottom of the consumer pyramid. We hope the festive season will help organised retail clock 8-10 per cent growth in sales,” he said.

Meanwhile, the unorganised retail is expecting the wedding season during November-December to garner a business of Rs 5.9 lakh crore. Jewellery will account for 15 per cent of this and apparel 10 per cent. Almost 50 per cent of the spend will go towards wedding-related services, said Confederation of All India Traders.