The Indian e-commerce sector is on track to achieve a remarkable gross merchandise value (GMV) of US$ 12 billion during the festival season from October to December 2024. This figure represents a substantial 23% increase from the previous year's GMV of US$ 9.7 billion, according to a report by the logistics firm Shiprocket. The anticipated growth is primarily attributed to robust consumer demand in various sectors, particularly in fashion, electronics, beauty, and personal care.

Additionally, the rise of quick commerce is expected to significantly bolster overall sales, contributing approximately US$ 1 billion to the projected GMV. As the e-commerce landscape continues to evolve, the report emphasizes the pivotal role of digital penetration in driving growth, especially in Tier-II and Tier-III cities. Improved internet access, rising disposable incomes, and increasing digital literacy are key factors propelling this trend, with around 60% of online festival orders anticipated to originate from non-metro areas.

This year's festival season is also seeing a noticeable influence from artificial intelligence. AI-driven shopping recommendations and the impact of social media influencers are playing a significant role in shaping consumer behaviour, particularly within the fashion and beauty categories. A staggering 84% of consumers are reported to make purchases based on promotions or endorsements from influencers, highlighting the power of digital marketing in today's e-commerce landscape.

Notably, 55% of festival season orders are expected to come from first-time shoppers, marking a significant shift in the demographic of online consumers. Weekend shoppers are also contributing to the festive surge, accounting for 27% of total festival sales. Sundays are projected to represent around 13% of sales, while Saturdays will contribute about 14%.

Mr. Saahil Goel, Managing Director and CEO of Shiprocket, stated, “As we enter the 2024 festive season, the momentum for e-commerce continues to build across Bharat, especially in Tier-II and Tier-III cities. With the rise of quick commerce and increasing global demand for Indian products, we are keen to assist MSMEs in capitalizing on this tremendous US$ 12 billion opportunity.”

As the festive season approaches, the Indian e-commerce industry is poised for significant growth, leveraging the combined effects of technological advancements, shifting consumer preferences, and expanding market reach into previously underserved areas.

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