Ecommerce festive sales to reach $12 billion, quick commerce gains ground

Ecommerce companies and online sellers in India are gearing up for a bumper festive season, with merchandise worth $12 billion expected to be shipped to consumers, marking a 23 per cent increase from last year’s $9.7 billion, reported The Economic Times citing market research firm Datum Intelligence.

Quick commerce, the burgeoning segment that promises rapid deliveries, is set to contribute $1 billion in gross merchandise value (GMV) to the festive sales. GMV is the total value of goods sold on ecommerce platforms, excluding discounts and returns.

Ecommerce platforms eye robust festive sales

The festive season, peaking around Diwali, is a critical time for e-commerce platforms, sellers, and major brands. This year, platforms such as Zomato-owned Blinkit, Swiggy Instamart, Zepto, and BigBasket’s BB Now are poised to capitalise on the high demand, particularly in groceries and beauty and personal care (BPC) categories.

“Quick commerce stands out this year,” said Satish Meena, an advisor at Datum Intelligence. “In grocery and BPC (beauty and personal care) categories, they will be the dominant players, cutting into sales from modern trade marketplaces and even kirana stores.”

Zepto is scaling up its inventory, expanding into new categories such as electrical appliances, beauty products, and gifting options. “We’re working closely with brands to craft festival-specific offers,” a Zepto spokesperson said. The report anticipates that quick commerce will account for 51 per cent of online grocery sales this year, up from 37.6 per cent last year.

Key categories driving growth
 

Smartphones, large appliances, mobile, and fashion categories will dominate this festive season, contributing to about 50 per cent of total sales, according to Datum Intelligence report. 

Ecommerce giants Amazon India and Walmart-owned Flipkart are set to launch their annual festive sales on September 27. Flipkart’s Big Fashion Festival on its subsidiary Myntra will kick off a day earlier, while Meesho’s Mega Blockbuster Sale is slated for the same date.

“For the upcoming festive season, Flipkart customers can expect enhanced on-app experiences including video commerce, immersive technologies like augmented reality (AR) and 3D try-ons, and an expanded product selection,” Harsh Chaudhary, head of growth at Flipkart, told The Economic Times.

Logistics ready for the festive rush
 

To manage the surge in demand, Flipkart has launched 11 new fulfilment centres and created over 100,000 temporary jobs in over 40 regions. It is also enhancing same-day and next-day deliveries across an expanding network of cities. Amazon India has opened three new fulfilment centres in key regions to support over 250,000 sellers and speed up deliveries.

Brands expecting high growth
 

Brands across sectors are also preparing for a sales surge. Wakefit, a mattress and furniture brand, anticipates double-digit growth, with key days seeing sales up to ten times the usual levels. “Given the bulky nature of our core products, quick commerce is not yet optimised for items like mattresses and furniture,” said co-founder Chaitanya Ramalingegowda. However, they expect significant contributions from smaller products like pillows and accessories.

Wearable and audio products brand Boat is also optimistic about the season. “Quick commerce is the third biggest channel for sales for the startup,” said Gaurav Nayyar, chief operating officer at Boat. 

Meanwhile, snacking brand Farmley sees quick commerce significantly contributing to its festive sales. “It is unlocking market access for us,” said co-founder Abhishek Agarwal.