As the 2024 festive season approaches, businesses are presented with a critical opportunity to drive unprecedented growth. With the Indian economy poised for a consumption boom, e-commerce is likely to join the party and achieve a remarkable ~20% year-on-year (YoY) growth in the festive season. This surge is a testament to the strategies employed by businesses in response to earlier macroeconomic challenges. In our previous analysis, we anticipated this resurgence, emphasizing how businesses are bouncing back, the positive festive spirit among consumers, and the promise of consumption revival this festive season.
We have closely monitored this landscape, and our latest Festive 2024 Report provides essential insights to help your brand or platform to capitalize on this pivotal moment. This is more than just a season of celebration—it’s a chance to position your business for sustained success in an increasingly competitive market.
Festive 2024: A notch above last year
During the festive season 2024 (typically defined from Onam to Bhaidooj), e-commerce is expected to generate over INR 100-120 thousand crore in gross merchandise value (GMV). This represents a notable increase compared to last year.
The surge in e-commerce activity can be attributed to several key factors that have shaped consumer behavior during this period.
1. Pent-up demand: in categories such as mobiles & electronics, which typically sees pent up demand during festive, and fashion, which has been slightly subdued this year
2. Premiumization: brands looking to push premium SKUs at a discounted price, to encourage aspirational buying
3. New selection & range: to be launched around the festive period, or for limited timeframe in trendy categories such as fashion
4. BAU growth trend: to continue with some festive upside, in segments such as BPC and q-commerce
What to expect?
Category Play
Festive is likely to help the big 3 of e-commerce (i.e. mobiles, electronics & fashion) to gain momentum, given their performance this year has been slightly subdued. the categories (BPC, home & q-commerce-led grocery) have had a better BAU and will see an incremental upside during the festive season, taking their festive growth figure to the north of 25%.
Platform Play
Q-commerce is likely to continue its rapid growth spree and could see ~100% YoY during the festive period, enabling ~8% of the festive GMV. Newer categories such as home & kitchen appliances (microwave, coffee machine, and air fryer) are likely to get pushed aggressively on q-commerce platforms and could also help the platforms to boost their average order values & profitability. Other regular festive bits such as gold/silver coins and festive/gifting collections in packaged F&B and beauty, would continue to see traction.
Slotted e-commerce (including horizontals, verticals, and D2C) will continue to drive the major 90%+ chunk of festive. Horizontals are likely to continue their dominance in mobiles, electronics, appliances, and home categories. Fashion & BPC purchases are likely to be spread across horizontals, verticals, and D2C platforms, depending on the brand & price point.
Affordability Measures
Brands / unbranded sellers and platforms are partnering closely to bring out the best festive deals in the market. We are likely to see more bundled / combo offerings, exchange offers, free gifts, and flash discount stores, on the leading e-commerce platforms. In the back end, this will be a factor of platforms helping brands with commission/fee waivers, ad credits, discount sharing, and analytics. Few platforms may also look to provide direct delivery fee waivers and financing options to customers.
Preparing for Festive 2024
For years, we have consistently produced detailed festive projections, helping businesses understand emerging trends and consumer behavior. With this year’s insights reaffirming our forecasts, we invite you to reach out to us for tailored strategies that can help your business capitalize on the growing opportunities this festive season presents. Let’s work together to maximize your success!
Stay tuned for further insights as we kick off with the festive season—your roadmap to maximizing success during this critical period.