Virendra Pandit
New Delhi: India not only accounts for nearly 40 percent of all digital payments in the world, but it also saw robust online sales worth Rs. 76,000 crores in the festive month (September 22 to October 23, 2022), a healthy 25 percent per year-on-year growth, market reports said on Thursday.
According to Bengaluru-based Redseer Strategy Consultants, the Tier 2 and above cities drove this growth and contributed 57 percent of festive GMV (gross merchandise value), the media reported.
The growth was largely driven by the fashion category, led by unbranded fashion.
“While mobiles and electronics continue to dominate category share, home and kitchen, groceries, and beauty personal care were the fastest growing categories. Grocery grew almost 2 times from last festive season,” said Sanjay Kothari, Associate Partner, Redseer Strategy Consultants.
Festive sales have largely become a Tier 2 and above phenomenon, with 64 percent of transacting shoppers coming from those cities.
Within the beauty business, makeup was the most sought-after category, with a lot of interest in looking and feeling good.
In-home furnishing and decor, cushion covers, showpieces, and decor accents contributed the most to the growth.
“Three in four sellers we surveyed reported at least 2 times volume growth in business as usual (BAU) during sale days, with strong support from platforms in planning and executing the festive season well. This increase was more visible in lower ASP categories like fashion where 42 percent of the sellers reported a 3 to 5 times growth from BAU,” Kothari said.
Offline retail stores saw robust footfalls during Diwali this year, which is also evidenced by growth seen from movements in the Google Mobility Index.