In recent years, India has proven to be one of the fastest growing internet economies in the world. The country has infused digital adoption in almost every area, be it digital payments, digital security or online networks, or more. Thus, there is no doubt that when it comes to shopping too, consumers are slowly but surely preferring the online route. But what’s interesting is that during the festive seasons, the already booming online shoppers only grow – and this year we’ll have to embrace 4X growth in online shoppers during the holiday week. , compared to 2018.
The number of buyers buying during the holiday week is around 4 times compared to 2018. However, the participation of online buyers during the holiday week compared to the overall annual online buyers is expected to double, growing from 18% in 2018 to 38% in 2022. is driven by multiple factors such as growing awareness among buyers of festive sales, growing reach and targeted selection for buyers in all types of cities, and growing expansion affordability buildings. Additionally, the rise of new e-commerce models such as video commerce will further drive the growth of online shoppers during the holiday season.
The category mix evolved differently in the pre-festive months, which impacted the festive category mix. This festive season will see the growth of the fashion category influenced by factors such as a growing buyer base from Tier 2+ cities, first-time shoppers starting their online journey with fashion and a increasing participation of fashion players in festive sales this year.
According to the Redseer report, festive sales are expected to hit $5.9 billion in the first week, projecting a 28% increase from last year, when they were $4.6 billion. Sales for the entire holiday month are expected to reach $11.8 billion this year, up from $9.2 billion in 2021. Online holiday sales are expected to double this year from pre-pandemic sales.
Festive seasons are the perfect time to almost double sales, and this year is no different, in fact, it’s the biggest GMV churn for India’s retail landscape. Massive growth in festive sales will further push the overall online retail GMV (Gross Merchandise Value), which stood at $52 billion in 2021, to grow by 30% to reach $68 billion in 2022. A lot has changed since the last holiday season. In order to capitalize on this trend and stay ahead of the game, retailers need to closely monitor consumer demand, anticipate early, and adapt to meet changing needs.