Winning Bizness Desk
Mumbai. With the festive season in full swing, online shopping has surged dramatically. In just one week, e-commerce platforms in India reported sales worth Rs 55,000 crore, a 26% increase compared to the same period last year. The largest contributors to this growth have been mobile phones, electronics, consumer durables, and general merchandise, which together account for nearly three-fourths of total sales. This year’s festive season sales, which commenced on September 26, have seen 55% of the purchases made during this period. Last year, the festive season's online purchases were valued at $9.7 billion (approximately Rs 80,000 crore), but this year the figure is projected to rise by 23%, reaching $12 billion.
Strong Demand from Small Towns and Cities
A key driver of the sales growth is the increased participation from customers in small towns and cities. Many of these buyers are opting for products with higher average selling prices. Some brands have even reported that demand has exceeded their supply capacity. Platforms such as Flipkart, Meesho, and Amazon India have witnessed robust demand from these regions, which is a notable shift from previous years when large metropolitan areas dominated the e-commerce landscape. Meesho, in particular, reported a 40% year-on-year increase in sales, with 45% of its buyers hailing from Tier-4 cities and beyond. Similarly, Flipkart noted strong demand from both large cities and smaller regions such as Medinipur, Hisar, Berhampur, Bankura, and Agartala.
iPhone 13, OnePlus & Samsung S23 Ultra Lead The Yay
Electronics items, especially those priced above Rs 30,000, have seen a sharp 30% increase in sales, with smartphones like the iPhone 13, OnePlus, and Samsung S23 Ultra being among the most popular choices. Amazon India revealed that 75% of its total orders were from Tier-2 and Tier-3 cities, underscoring the expanding consumer base for high-value electronics in these regions. In addition to smartphones, categories like home décor, electronics, and gaming accessories saw a volume increase of over 100% during Navratri. The rising trend of buying on EMI has also contributed significantly to the growth. More than 50% of buyers purchasing expensive items such as televisions, refrigerators, and laptops are opting to pay via EMIs, making high-end products more accessible.
Another Sales Wave Expected
Retailers are expecting another surge in sales between Dussehra and Diwali, traditionally a peak shopping period in India. With the festive season just beginning, the overall e-commerce landscape is poised for further expansion, fueled by strong demand from both urban and rural consumers. The shift in online shopping habits, especially from Tier-2 and Tier-3 cities, indicates the growing influence of digital platforms across India, marking a broader and more inclusive growth trajectory for e-commerce.
