E-commerce platforms see strong festive season growth in 2023

E-commerce portals are witnessing a huge surge as India’s prime festive period reaches a crescendo. Even as offline retail returns to pre-Covid footfall rush this festive season, e-commerce continues to also grow. According to a Redseer report, online festive season sales are expected to cross Rs 90,000 crore this year, a growth of 20% over last year.

The latest insights from Axis My India’s India Consumer Sentiment Index reveal that as the glow of Diwali approaches, the festive enthusiasm is palpable, as 25% of the respondents are gearing up to elevate their shopping endeavours during this season. Fashion seems to be a focal point for many, as an overwhelming 67% of the respondents are eager to buy new clothes for festivities.

It is also noticed that about 100 per cent of pincodes in India can be reached through e-commerce websites, whether it is Amazon, Flipkart, Ferns N Petals, Nykaa, Ajio, or online grocery retail Big Basket and many others. The e-commerce trend is gaining major popularity even in Tier 2 and Tier 3 cities as they now make up nearly half of all shoppers and contribute three of every five orders for leading e-retail platforms.

Online event most awaited for e-Commerce purchases during the festive season had many surprises, as per an Ipsos-IndiaBus Festival Poll. Flipkart’s Big Billion Days topped the list as the most preferred e-marketplace; Amazon Great Indian Festival (40%) was close on the heels, among others.

According to a Redseer report, the Flipkart Group topped in terms of GMV at 63%, followed by Amazon. Flipkart led in terms of volumes as well, followed by Meesho at 25% of the total orders.

As per media reports, Amazon India has claimed that the festive season sales in 2023 are the best that the e-commerce major has registered in its 13-year presence in India. Amazon India had earlier stated that the first 48 hours of the Great Indian Festival 2023 witnessed the highest visits, transactions and orders from customers with 9.5 crore customer visits. It further said that it saw the best-ever start to the event, with thousands of sellers achieving their highest-ever single day sales; with over 65% of the overall participating sellers hailing from Tier 2-3 cities; more than 35% increase in small and medium businesses securing sales during the first 48 hours.

Excitement for festival shopping was seen to be rife across SECs – SEC A (75%), SEC B (67%) and SEC C (62%), as revealed by the Ipsos Festival Poll, a pan India, comprehensive poll. According to the poll, urban shoppers have a large shopping list, with items like apparels (90%), sweets and snacks (76%), prayer items (73%), firecrackers (64%), home décor items (62%), dry fruits and chocolates (53%), jewellery (44%), and consumer durables (22%) topping their list.

“While physical stores continue to play a crucial role, they have had to adapt to this changing landscape. Many retailers have invested in creating an omnichannel presence, integrating their online and offline offerings,” said Prashant Parameswaran MD & CEO, Tata Consumer Soulfull. He added, “In recent years, the meteoric rise of e-commerce has indeed disrupted traditional offline businesses. The convenience and accessibility of online shopping have led to a shift in consumer preferences, with many people now choosing to order a wide range of products from the comfort of their homes. Having said that, the Indian retail landscape is large enough for physical and digital retail formats to co-exist and grow together.”

On adopting omnichannel for the success of business, Lokesh Kataria, CMO, Ace Turtle, said, “Ace Turtle’s omnichannel commerce approach for all our licensed brands believes in providing customers a seamless experience across online and offline channels.  We enable consumers to conveniently shop for their favourite Lee and Wrangler products across brand webstores, department stores , exclusive brand outlets across the country and online marketplaces (such as Flipkart, Amazon, Myntra etc). We use Rubicon, our proprietary omnichannel technology platform that enables our brands to have a unified view & easy, seamless, optimized management of their commerce operations across channels.”

Rajiv Chandrashekhar Menon, National Head – Sales and Retail Operation, Mia by Tanishq, sharing his views on online growth, said, “While e-commerce has seen remarkable growth with Mia’s presence across our homesite, home application, Tanishq website and marketplaces such as Amazon, Flipkart, TataCliq and TataNeu, the offline retail experience remains unparalleled. The personal touch, the ability to try and feel products, and the instant gratification of purchase are irreplaceable aspects. Our extensive network of physical shop-in shops in over 300 Tanishq in addition to over 150 exclusive Mia sores, complemented by a robust online ecosystem, ensures customers have the flexibility to choose their preferred mode of shopping.”

The future of the offline retail sector is promising. While digital channels play a vital role, the significance of physical stores remains intact. Striking the right balance and providing consumers with a seamless omnichannel journey is paramount. We're enthusiastic about the opportunities ahead and committed to delivering exceptional experiences through all our channels,” he added.

While online shopping continues to thrive, physical stores will adapt and endure. Success will rely on providing immersive, personalized experiences, seamless integration with digital channels, and convenience. On the difference between offline and online retail, Prashant Parameswaran, elaborated, “Stores will act as brand showcases and community hubs, fostering local engagement. Sustainability and ethical practices will be paramount. Innovative technologies, like augmented reality and data analytics, will enhance the in-store experience. The key to survival lies in evolving with changing consumer preferences, offering something unique that online shopping can't replicate, and staying at the forefront of evolving trends in the retail landscape.”

To conclude it can be said that the future of the Indian retail sector is poised for progress, both in the offline as well as online domains. While online shopping continues to thrive, physical stores will adapt and endure. The key to survival lies in evolving with changing consumer preferences, offering something unique that online shopping can't replicate, and staying at the forefront of evolving trends in the retail landscape.

(Additional inputs by Priya Lalwani)