Online festive sales will hit $11.8 billion despite economic worries: report

Indian e-commerce companies are set for a festive bonanza with sales likely to rise 28% year-on-year to $11.8 billion in the month, largely driven by the category of fashion, according to a new report from Canadian multinational e-commerce company Shopify.

The report titled “Shopify Festive Season Report 2022” indicates that sales reached $5.9 billion in the first week of the month, driven by the doubling of online shoppers during the festive season compared to 2018.

He said the increase in online shopping was due to increased awareness of festive sales, growing reach, targeted selection and expansion of products in the affordable range for shoppers in all types of cities. . The report, he said, examines the effects that the changing retail landscape has had on the spending habits of people across the country, especially at a time when the economy is unstable.

“Diwali is a mega gala for businesses, with the festive season seeing record sales every year. With a growing momentum for convenient and tech-savvy shopping options among modern consumers, there has been a sea change in customer preferences regarding their party purchases,” he added.

The company said that as more consumers continue to rely on online shopping for convenience, Indian merchants expect to record record sales during the 2022 festive season. Consumption in essentials, electronics, and fashion has driven an increasing number of online shoppers, especially in Tier II and Tier III cities.

Festive sales, he said, will also boost online retail’s GMV (Gross Merchandise Value) – the total amount of sales a business made – which stood at $52 billion in 2021, for jump 30% to $68 billion in 2022.

The report indicates that 85.82% of consumers plan to spend more than they have in previous years, and that 40% of consumers are expected to spend more 10,000.

The growing millennial consumer base is focusing more on convenience, opting for online shopping over traditional shopping methods. Thus, 78.57% of consumers surveyed for the report plan to shop online more than they did before the pandemic during the holiday season.

It has also seen an increase in the number of those wishing to buy Indian brands. This year, 96.04% of consumers expressed their desire to shop from Indian brands this festive season, up from 57.9% last year. Many also expect merchants to offer discounts and better deals during the holiday season to retain loyalty. There is also a sea change among consumers, and a majority (75.82%) have chosen discounts and loyalty programs as their primary means of retaining their spending. In the past, product range and quality were the main drivers of consumer loyalty.

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