E-commerce GMV to increase 23% to US$ 12 billion in 2024 festival season: Report

Indian e-commerce is projected to reach US$ 12 billion in gross merchandise value (GMV) during the festival season from October to December 2024, reflecting a 23% increase from the previous year, according to a report by logistics firm Shiprocket. In the same period in 2023, GMV stood at US$ 9.7 billion. This growth is primarily driven by consumer demand in the fashion, electronics, beauty, and personal care sectors, alongside a significant rise in quick commerce, which is expected to contribute US$ 1 billion to the overall GMV. The report highlights that digital penetration in Tier-II and Tier-III cities is propelling festival season e-commerce growth, with improved internet access, rising disposable incomes, and increased digital literacy contributing to the trend. Approximately 60% of online festival orders are anticipated to come from non-metro areas.

Artificial intelligence-driven shopping recommendations and social media influencers are influencing consumer behaviour this year, particularly in the fashion and beauty categories, with 84% of consumers making purchases based on promotions or influencer endorsements. Notably, 55% of festival season orders are expected to originate from first-time shoppers. Weekend shoppers account for 27% of total festival sales, with Sundays representing around 13% and Saturdays about 14%. Managing Director and CEO of Shiprocket, Mr. Saahil Goel, 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 capitalising on this tremendous US$ 12 billion opportunity.”

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.