Amazon sees 50% YoY jump in smartphones above Rs 20,000, driven by premiumisation, GST rate cut

E-commerce giant Amazon India reported robust demand during its Great Indian Festival 2025, with premium products across categories driving growth. Smartphones priced above Rs 20,000 recorded 50% year-on-year (YoY) growth, while premium TVs performed strongly, with QLED models up 23% and Mini-LED TVs up 27% YoY. Laptop sales surged, with the MacBook Air M4 selling at 94 times its regular volumes, and the Sony Home Theatre System moving at 196 times its usual rate.

Luxury and lifestyle categories also saw significant spikes. Lab diamonds grew 10X, Korean beauty products increased over 3X, and premium watches achieved 1.5–2X growth YoY. Precious jewelry and silver coins surged 4.5X compared to last year.

Festive season bonanza: Brands across categories pass on GST cuts to consumers

The Great Indian Festival 2025, which opened for Prime members on September 22 and to all customers on September 23, attracted over 38 crore customer visits. The surge in demand was driven not only by premiumisation but also by increasing participation from smaller towns, the online retailer mentioned.

“The Amazon Great Indian Festival 2025 is seeing a record-breaking start. The first 48 hours have been our biggest ever, with an unprecedented 38 crore customer visits and the highest number of Prime members shopping during Prime Early Access,” said Saurabh Srivastava, Vice President, Amazon India. He added that the #GSTBachatUtsav initiative, under which sellers passed on GST benefits worth crores, was “incredibly well-received.”

Grocery essentials also recorded strong growth, with beverages, oils, and cereals up 15% YoY. High-protein foods and spreads from D2C brands surged 27% YoY, while health and wellness products flourished—whey protein sales increased 28% and vitamins & supplements grew 39% YoY. Tier 2 and 3 cities contributed notably, posting a 21% YoY increase, reflecting rising demand beyond metro areas.

GST cuts spark festive rush as AC, TV sales double on day one

The GST reforms effective from September 22 lowered tax rates across several high-demand categories, including large-screen TVs, mid-range fashion, and furniture, providing direct price benefits to consumers. This has encouraged shoppers to move beyond tactical discount-hunting toward more aspirational purchases, boosting participation from tier 2 and tier 3 cities and driving growth in discretionary spending.

“Sales in the first two days surged 23–25% year-on-year, marking a four- to fivefold jump compared to last year’s muted start. The combined impact of GST 2.0 reforms and festive sentiment fueled a wave of premium smartphone and TV purchases,” noted market research firm Redseer.

Festive boom: Hiring surges 20% in India, fueled by e-commerce and tier-2 cities