GoKwik, a leading e-commerce enabler, anticipates a significant 40 per cent increase in sales during the upcoming festive period driven by a resilient Indian economy, the rise of aspirational Generation Z consumers, and the emergence of direct-to-consumer (D2C) brands.
According to data from GoKwik’s network, which includes over 4000 direct-to-consumer (D2C) brands, there has been a 38 per cent increase in Gross Merchandise Value (GMV) and a 49 per cent rise in orders in July compared to June of this year. This early spike suggests that the festive shopping season has begun earlier than usual and is being driven by online shopping.
This year, with more shoppers adopting a direct-to-consumer (D2C) approach, an increasing number of Gen Z individuals entering the workforce with disposable income, and a growing emphasis on aspirational purchasing of premium products, GoKwik anticipates a 40 per cent increase in orders during the festive season.
Last year, brands on the GoKwik network experienced a 34 per cent uplift in GMV and a 38 per cent increase in orders. The brands continued to showcase a boost in order volume even as major marketplaces were running concurrent sales.
Return to Origin (RTO) rates, a critical metric for e-commerce success, saw a 7 per cent decrease across GoKwik’s network last year. This year, the company expects this improvement to double, driven by brands becoming more vigilant in understanding customer intent and enhancing communication through multiple channels.
Notably, the most popular price points for COD (Cash on Delivery) orders ranged between Rs 900- Rs 1,500 and above, while prepaid orders were concentrated in the Rs 400- Rs 800 range.
This indicates that while Indian consumers are becoming more comfortable with online shopping, caution remains, particularly for high-value items, where COD continues to be a preferred payment method.
Tier-3 cities emerged as significant contributors during last year’s festive season, accounting for nearly 40 per cent of total orders. This trend will continue this year, with markets and internet penetration deepening in these regions.
Additionally, Average Order Value (AOV) is projected to grow by 12-15 per cent this festive season, driven by bundle offers, a focus on premium products, and increased gifting. Aspirational buying is rising, particularly in Tier-3 cities, where consumers increasingly spend on higher-end products, facilitated by more accessible payment modes such as Buy Now, Pay Later (BNPL) options and credit facilities.
Last year, the top-performing categories during the festive season were Fashion, Beauty and Personal Care, and Electronics. However, the most significant growth in the number of orders was in beauty accessories (50 per cent) and fashion (36 per cent).
