As India’s ecommerce industry gears up for its 10th year of festive season sales, the landscape is more competitive than ever. Established players like Amazon and Flipkart face new challengers, including Tata Neu and JioMart, amid projections of a 20% surge in sales. The Direct-to-Consumer (D2C) segment is expected to lead with a 40% QoQ growth, contributing to the industry’s remarkable trajectory from INR 27,000 Crore in 2014 to a projected INR 5,25,000 Crore in 2023. Despite increased GMV, individual user spending is expected to hold steady, with a shift in consumer activity to smaller towns and cities broadening the audience for platforms like Amazon and Flipkart.
Positive consumer sentiment prevails, with 81% of consumers expressing enthusiasm for the upcoming festive season, driven by the overlap of festivities and wedding seasons. Ecommerce platforms are intensifying efforts to support sellers, offering attractive commission rates and advanced tools. Tier II and III cities take the spotlight as major contributors to festive season sales, driven by residents eager for a festive makeover and improved connectivity in rural areas. As we enter this milestone year, the evolving landscape emphasizes the growing influence of D2C brands, stable user spending, and positive consumer sentiment, with Tier II and III cities positioned as primary growth engines.
The festivities in the final quarter of 2023 present opportunities for marketing specialists to tap into a consumer base eager to enhance their celebrations. Amidst increased competition, key areas to watch include Buy Now, Pay Later (BNPL) schemes, customer retention, and the impact of Gen Z’s brand preferences, showcasing the promising future of ecommerce marketing in India.
