A report on Thursday said that e-commerce companies are expected to post a 28 percent year-over-year growth in sales at $11.8 billion during the festive month of this year.
A festive month is generally defined as a period starting from the first sales event and lasting roughly until the week of Diwali, including days of no sales or business as usual in between, according to Redseer.
This growth is expected to be driven by a doubling of online shoppers during festive sales compared to 2018, strategy consulting firm Redseer said in its report.
“As the holiday season begins across the country, Redseer expects online sales during the holiday month to reach US$11.8 billion, a 28 percent increase from last year,” the company said.
Moreover, the mix of categories has been developing differently in the pre-festive months which will affect the holiday category mix as well, Redseer said in its report.
Redseer also said that in the first week itself, sales are expected to reach $5.9 billion, forecasting a 28 percent increase from last year, when it was $4.8 billion.
Noting that this year the fashion category will see strong growth driven by the increasing base of shoppers from Tier 2 cities and first-time shoppers who generally tend to start their online shopping journey with fashion, he said, there will also be an increased participation of fashion-driven players in festive sale. This year.
It added that the mobiles and electronics category is expected to remain strong during the period, driven by better deals and new launches.
“We expect a 4-fold growth in the number of online shoppers as of 2018. This growth has been driven by accelerated digital adoption and increased penetration in Tier 2 cities.
“We expect this expanded customer base to be reflected in increased sales during the festive sales period as well,” says Sanjay Kothari, Associate Partner at Redseer Strategy Consultants.
Kothari added, “The number of online shoppers during the festive season has largely doubled due to increased awareness of holiday sales among shoppers, increased reach, targeted selection, and expansion of products within the affordability range of shoppers across various types of cities.”
Additionally, the launch of new e-commerce models such as live commerce/video commerce will drive the growth of online shoppers over the festive period.
In the report, Redseer said the explosive growth in holiday sales would push total online retail sales (GMV), which reached $52 billion in 2021, a 30 percent jump to $68 billion in 2022.
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