The first phase of eCommerce festive sales in 2022 came to an end recently. Here are statistics and reports that will make you wait with bated breath for the next phase!
Here’s how Indians are going to be shopping for Diwali and Dhanteras!
- 1 eCommerce platforms reported a nearly 5.4x growth
- 2 DTC brands DON’T NEED to depend only on festive sales for profit
- 3 Tier 2 and tier 3 made up more than 60% of the eCommerce customer base
- 4 The top category was fashion followed by beauty and personal care
- 5 Non-essential products see a surge in demand this festive season
- 6 This festive season saw higher discounts than in 2021
eCommerce platforms reported a nearly 5.4x growth
The eCommerce festive sales that start around September 22, 2022, have seen an extremely positive engagement within the first few days. eCommerce platforms that had mega festive sales during this period have reported nearly a 5.4x growth in their overall daily sales according to Redseer consulting.
eCommerce shipment volumes have also grown 3x
More orders = more deliveries!
This has had a positive impact not only on the eCommerce brands but on shipping services as well. Shipment volumes grew more than 3x compared to pre-festive levels.
DTC brands DON’T NEED to depend only on festive sales for profit
DTC brands reported a somewhat muted surge in profits. Reports suggest that in 2022, the festive period saw a 20% growth in sales.
There are multiple reasons that can attribute to this (thankfully, mostly positive):
- Since DTC brands cater to a community, they don’t have to single out promotions during festivities.
- DTC brands of the fashion, personal care and accessories segment saw a lot of shoppers deciding to buy a product in their time of need, as opposed to waiting for festive sales.
- Since customers have more of a personalised connection with the DTC brand, it’s easier for them to be loyal throughout the year.
Numbers for overall profit in the DTC segment are still definitely positive, with more and more sellers choosing to sell online independently.
“If you compare general eCommerce sales in any particular month, you will find an average of 20-25 % YoY growth. This showcases that people are now ordering online throughout the year. ” Kapil Makhija, CEO, Unicommerce.
Related read: How To Sell Online In India: Website vs Marketplace
Tier 2 and tier 3 made up more than 60% of the eCommerce customer base
There have been a significant jump in the customer base from Tier II and tier III cities. Not only are people shopping more, there were more online sellers from these cities as well.
Improving logistical connectivity, digital access, and platforms like Instamojo have helped small business owners like the neighbourhood Kirana stores to move online. Hundreds of handmade artists, textile artists etc have started selling online from Tier II and tier III cities.
Shoppers from tier II and III are not as brand conscious as metropolitan shoppers
Another important factor that has helped in eCommerce growth in these cities has been the fact that shoppers are not as brand conscious as in metropolitan cities. For them, affordable prices along with quality products are the best combination.
We also have to remember, that it’s easier to build communities around DTC brands in smaller towns. This has also helped boost hyperlocal eCommerce sales.
The top category was fashion followed by beauty and personal care
People from non-metropolitan cities also shopped mostly for fashion and accessories. Following the success of this category closely was beauty and personal care.
It’s understandable considering festivals are a time of glamming yourself up in ethnic wear and giving your loved ones gifts.
Bombay Shaving Co, saw a 2.5-time jump in sales compared to last year’s sales on Amazon and Flipkart, its chief operating officer, Deepak Gupta, told ET.
Non-essential products see a surge in demand this festive season
Non-essential products like electronics, home products, accessories, and automobiles also saw a surge in demand.
This demand is likely to continue for Diwali and Dhanteras as well.
P.s Jewellery sales were also up by 30% this Dusshera, compared to 2021. If you sell jewellery online, this is the time to pull up your socks for Dhanteras!
This festive season saw higher discounts than in 2021
The first phase of the eCommerce festive sales also saw higher overall discounts offered by banks, financial institutions and brands as compared to 2021.
“There was a 5X surge in some categories. We saw discounts of up to 50% on hero products in categories such as mobiles, electronics, and large appliances. Beauty and personal care, as well as home appliances, saw better discounts over last year,” said Swati Bhargava, Co-founder, CashKaro. (As told to Your Story)
Related read: Offering festival discounts? Here’s how to do it right
Offer discounts on Instamojo
Want to offer a flat discount on certain products? Or the whole store? Or even personalised discounts? With an Instamojo account, you can easily set up different kinds of discounts to incentivize your customers to buy more from you this Diwali and Dhanteras!
Grow your business with Instamojo