Festive e-commerce sales reach Rs 1 lakh crore with 23% growth

India’s e-commerce platforms achieved nearly Rs 1 lakh crore (US$ 11.9 billion) in festive season sales, with a 23% growth over last year. Key drivers included rising demand from non-metro areas and increased purchases in premium categories like smartphones, fashion, and appliances.

E-commerce platforms saw festive season sales soar to nearly Rs 1 lakh crore (around US$ 11.9 billion) over the recent month-long period, marking over 20% growth compared to last year, according to industry data. Strong demand from non-metro buyers and an uptick in luxury brand purchases helped drive transactions. Sales for this festive season rose by over 23%, per e-commerce consultancy Datum Intelligence, following growth trends from last year (Rs 81,000 crore) and 2022 (Rs 69,800 crore).

More than half the sales occurred in the first week, with Flipkart’s Big Billion Days and Amazon’s Great Indian Festival (beginning September 26) generating Rs 55,000 crore (US$ 6.5 billion). Sales dipped slightly in the third week before accelerating again. Some sellers on Flipkart reported 40-50% annual growth, while Amazon noted that “over 85% of its customers were from non-metro cities.”

“There was increased demand from tier II-III and beyond, reflected across categories including smartphones, television sets, appliances, and fashion,” stated Satish Meena, adviser at Datum Intelligence.

Popular product categories included smartphones, groceries, beauty, personal care, home, and kitchen items. Smartphones were the leading category, with online channels accounting for around 65% of smartphone sales, according to Meena. Flipkart and Amazon both reported smartphones as top-selling products. Flipkart said, “Premium and mid-premium Android smartphones saw robust growth, with risks high interest in artificial intelligence (AI)-led features.” This shift toward premium options was evident, with a 17% year-on-year increase in demand for top brands. Amazon experienced its highest volume growth for smartphones priced over Rs 30,000, with tier II cities contributing to over 70% of premium smartphone purchases.

Consumer demand for premium brands was a standout trend. “Demand for premium large appliances grew by 30% over last year, while the fashion and beauty premium portfolio saw an over 400% spike vs business-as-usual (BAU) in categories like watches, fragrance, K-beauty, jewellery, handbags, sportswear, luggage, and kids-wear,” Amazon reported.

Fashion also saw an uptick, with Nykaa CEO Falguni Nayar noting, “Sales picked up nicely this year, especially as we had a slower start in the first two quarters (in fashion). With the festive season ending early this year, we’re looking at wedding consumption trends to continue this momentum beyond Diwali.”

SoftBank-backed Meesho’s Mega Blockbuster Sale from September 27 to October 6 saw orders rise by over 40% from last year, with 105% growth in the home and kitchen category, 60% in beauty and personal care, and a 75% increase in children’s essentials.

The season’s sales spike contributed to a rise in UPI transactions, with October seeing 16.58 billion transactions—a 45% year-on-year increase—reaching Rs 23.5 lakh crore, up 34% from last year, per the National Payments Corporation of India (NPCI).

According to Datum’s Meena, “Quick commerce performed much better than expected, accounting for about US$ 1.1-1.2 billion in sales this festive season.” New city expansions helped drive unplanned purchases, particularly in the final festive week.

Homegrown direct-to-consumer (D2C) brands also witnessed strong gains, with Amazon data showing up to 700% annual growth in categories like beauty, shoes, apparel, and luggage. Sleep solutions brand Wakefit saw “over 50% growth in revenue this festive sale, compared to the previous year, and a five-fold rise in website traffic,” per a company spokesperson, crediting strategic inventory planning by data science and revenue teams.

Pilgrim, a personal care brand, saw 40-50% growth on marketplaces and a 50% rise in its own channels. Founder Anurag Kedia highlighted hair and face serums, with strong demand for new SKUs in these categories.