• India's e-commerce sector saw a 12% growth during the 2024 festive season, with sales reaching $14 billion, driven by tier 2 and 3 cities.
• The growth was fueled by spending across various categories, including quick commerce, electronics, fashion, beauty and personal care, home furnishings, and groceries.
• The retail landscape is undergoing a shift, propelled by technological advancements, with retailers leveraging technology to enhance efficiency and customer centricity.
• Fashion emerged as the fastest-growing category in e-commerce, with a 3 times growth increase over the business as usual months this fiscal.

India's e-commerce sector has witnessed a significant growth of 12% during the festive season of 2024, with sales reaching a gross merchandise value (GMV) of approximately $14 billion (more than Rs 1.18 lakh crore). This growth was primarily driven by tier 2 and 3 cities, indicating a shift in consumer behavior and the increasing penetration of e-commerce in smaller towns and cities.

The growth was fueled by resilient consumer spending across various categories, including quick commerce, electronics, fashion, beauty and personal care (BPC), home furnishings, and groceries. This was revealed in a report by Redseer Strategy Consultants, which also highlighted the dynamic nature of the consumer market during the festive season, which spanned from September 15 to October 31.

Interestingly, the report noted a higher engagement with both premium products and low average selling price (ASP) items. High ASP products such as large appliances and premium electronics saw strong demand in metro areas, while affordable items in fashion and BPC continued to drive frequency and growth in other regions.

The Role of Technology in Retail

The retail landscape is undergoing a seismic shift, largely propelled by technological advancements. The global pandemic and the ascent of eCommerce have only intensified the influence of technology. Retailers have leveraged technology innovations to enhance efficiency while remaining steadfast in their commitment to customer centricity. The result? Total experiences that delight both customers and employees.

However, the retail journey doesn't stop here. The evolution of customer behavior and technology continues unabated. Retailers are mandated to stay attuned to this evolution to stay ahead of the curve in terms of sales and customer satisfaction.

The future of retail is poised to ride the technology wave, further bridging the physical and digital realms. Retailers are looking beyond mere product sales on shelves, aspiring to build comprehensive ecosystems that encompass services spanning health, finance, entertainment, and more capitalizing on digitization and technology's ability to offer enhanced accessibility to consumers. In this era of technological transformation, barriers between industries are blurring, enabling retailers and other operators to seize opportunities rapidly by engaging directly with consumers.

The Impact of E-commerce on Fashion and Retail

Fashion emerged as the fastest-growing category, with a 3 times growth increase over the business as usual (BAU) months this fiscal. Ethnic wear and accessories drove this growth, particularly in Tier 2+ cities, wherein unbranded ethnic wear, jewelry, and women's accessories gained traction.

Premium electronics, including air conditioners and large appliances, experienced significant demand due to prolonged summer conditions. The quick commerce sector also extended its offerings to include electronics and home appliances, meeting festive demand through expanded delivery hours.

The 17th edition of Myntra's flagship EORS, kicked off to a great start, witnessing a strong uptick in demand across categories. In addition to shoppers from metro cities, the non-metro cities and towns also shopped actively indicating the rise of the regional fashion-forward shopper base in the country. The opening day of the event saw 130k first-time shoppers coming from non-metros. Over half of the overall shoppers from the initial day of the fashion event were women.