As per the report, the sales are estimated to reach $5.9 Bn in the first week itself
The online festive sales gross merchandise value is projected to grow three fold this year, as compared to the pre-pandemic festive sales of 2018
The overall online retail GMV is expected to touch $68 Bn in 2022, a 30% increase from $52 Bn in 2021
Online sales in the country are expected to grow 28% year-on-year to $11.8 Bn during the upcoming festive season, a report by consulting firm RedSeer Consulting said.
As per the report, the sales are estimated to reach $5.9 Bn in the first week itself as against $4.8 Bn in 2021.
Moreover, the online festive sales gross merchandise value (GMV) is projected to grow three fold this year, as compared to the pre-pandemic festive sales of 2018.
4X Growth From Pre-Pandemic Period
“We are forecasting 4X growth in the number of online shoppers from 2018. This growth has been driven by accelerated digital adoption and increasing penetration in tier 2+ cities. We expect this expanded customer base to reflect in higher sales during the festive sales period as well,” Sanjay Kothari, associate partner, Redseer Strategy Consultants, said.
The festive month starts from the first sales day and lasts roughly till the Diwali week, and includes non-sales days in the interim, the report said.
As all leading ecommerce players are looking to grab a pie of festive sales, the players are gearing up for the upcoming season. Although Flipkart and Amazon have not revealed dates for the festive sales yet, both the ecommerce majors are building up the excitement gradually.
Participation of online shoppers during the festive week, out of total online shoppers, has also doubled from 18% in CY18 to a projected 38% in CY22.
“This is majorly due to increasing awareness of the festive sales among the shoppers, growing reach, targeted selection, and expansion of products within the affordability range for shoppers across city types,” Kothari said.
Along with traditional ecommerce models, the launch of new ecommerce models such as live/video commerce will further drive the growth of online shoppers during the festive period, the report added.
Fashion Category To See An Upsurge
The last two festive seasons suffered several restrictions owing to the Covid-19 situation. As more people stayed at home, the fashion category took a hit in the last two years. However, the upcoming festive season might see sales going back to normal. As per the report, driven by an increasing shopper base from cities beyond Tier-2, the fashion category is looking at a strong growth this year.
Usually, first-time shoppers start their online shopping journey with the fashion category. Hence, they are also expected to contribute to that pie. In addition, the participation from fashion-led players is also expected to rise in the festive sales this year, the report added.
Among other categories, the mobile and electronics category is expected to remain strong on the back of better deals and new launches as well.
Also, the overall online retail GMV is expected to touch $68 Bn in 2022, a 30% increase from $52 Bn in 2021.
In India, the ecommerce sector continues to be one of the top three funded sectors in the startup economy with the highest number of unicorns. The sector has 23 unicorns, 14 soonicorns and more than 682 unique funded startups, according to a report by Inc42.
