The Indian festive season served sweet financial gains and an array of options to both buyers and sellers. The e-commerce landscape saw a massive surge during the festive season of 2024, with buyers flocking to the platforms for deals. This surge was significantly fueled by the fashion and ethnic wear categories.
It was refreshing to see that Tier-2 plus cities increased their spending. Fashion, particularly ethnic wear and accessories, witnessed a remarkable three-time growth compared to the earlier months. The sector witnessed significant popularity in Tier-2 and Tier-3 markets. Smaller towns and cities experienced the highest growth rates, with spending increasing by 13 per cent year-over-year, signaling a major shift in the shopping habits and purchasing power of these regions.
Redseer Strategy Consultants’ recent festive e-commerce report covering the period from 15th September to 31st October, revealed that the sector recorded a gross merchandise value (GMV) of approximately US $ 14 billion. This figure represents a 12 per cent increase compared to the previous year.
Tier-2+ customers largely bought un-branded ethnic wear and women’s accessories. The increasing visibility and familiarity with the D2C brands through digital media, also made the sector stand out. In metro and Tier-1 cities, international and premium brands ruled the landscape.
The festive season of 2024 saw a breakthrough in the e-commerce landscape. Although the overall growth rate of shoppers slowed, the average spend per shopper rose by 5-6 per cent. This suggests that, while the e-commerce customer base has largely stabilised at approximately 250 million annual shoppers, their level of engagement and purchasing power have increased substantially.
