India's festive e-commerce sales fall 10% as electronics get costlier
What's the story
India's festive season has started on a subdued note this year, with e-commerce sales witnessing a major decline. The gross merchandise value (GMV) of online festive sales is estimated to have declined by 7-10% year-on-year (YoY) in the first four days. This is mainly due to higher smartphone and laptop prices affecting big-ticket purchases.
Sales figures
Sales during October 7-10 this year
According to e-commerce consultancy Datum Intelligence, online festive sales between October 7 and October 10 stood at ₹29,800-30,900 crore.
This is lower than the ₹33,200 crore recorded during the same period last year.
The decline comes as electronics prices have gone up due to high memory and component costs. This has made consumers more reluctant to upgrade their devices.
Market dynamics
Absence of GST cut affects sales
Satish Meena, founder of Datum Intelligence, explained that the absence of a Goods and Services Tax (GST) cut this year has affected sales.
He said last year's GST rate cuts were implemented on September 22, coinciding with the start of major sales and boosting big-ticket purchases.
As per RedSeer, e-commerce platforms recorded around $2.5 billion (around ₹24,000 crore) in GMV over October 8-9. This was with 8-9 crore orders placed and 60-65 million shoppers participating.
Market trends
Wider festive basket with fashion leading the way
Nikhil Dalal, associate partner at RedSeer, said the opening two days showed India's festive e-commerce basket is widening.
He noted consumers are spreading their spending beyond just mobiles into fashion, electronics, and appliances.
Fashion GMV grew 22-25% YoY in the first two days, accounting for 15-18% of sales. This was driven by demand from shoppers in smaller towns buying festive wear at accessible price points.
Market shift
Smartphones won't drive sales this time
Smartphones won't play as big a role in this year's festive sales as they usually do.
Their share of overall festive GMV is expected to decline to 30% from 35% last year, according to Datum Intelligence.
Mobile sales growth is also expected to slow sharply from 6% to 26% in 2025.