Festive season to propel India's e-commerce growth by 20%: Redseer
Redseer Strategy Consultant's report reveals that brands are leveraging e-commerce platforms to promote mid-range products to maximize reach and appeal to relatively less accessible tier 2+ customers
ADVERTISEMENT
As the festive season kicks off in India, e-commerce ads are pouring in sales, discounts, and unbeatable offers. Brands are equally bullish on the festive season and are implementing a multi-channel strategy to drive sales.
Redseer Strategy Consultant's report reveals that brands are leveraging e-commerce platforms to promote mid-range products to maximize reach and appeal to relatively less accessible tier 2+ customers.
Meanwhile, the e-commerce platforms are offering incentives and support mechanisms to brands such as sponsorships, prime ad placements, price subsidies, and tools to showcase products' presence on the top.
The Redseer report predicts that e-commerce festive consumption will reach Rs 1-1.2 trillion in Gross Merchandise Value (GMV) during the 2024 season.
'Pent up demand for fashion'
Mobile and other electronic items have witnessed strong demand from consumers during the festive season, But this year, a pent-up demand for fashion has emerged, according to Redseer.
Riding the fast fashion wave, brands are showcasing new and trendy collections to capitalize on the festive period.
Additionally, brands are tapping into the Premiumization trend by introducing innovative promotional offers like exchange deals and bundle discounts on high-end products to encourage purchases of higher-ticket items.
According to Redseer analysis, analysis forecasts festive season would propel India's e-commerce growth by 20% year-on-year (YoY) growth, fueled by a surge in demand and premiumization wave.
Quick commerce is expected to contribute approximately 8% to overall e-commerce growth in Festive 2024, up from 5% last year, the strategy consultancy firm added.
“Newer categories such as home & kitchen appliances (microwave, coffee machine, and air fryer) are likely to get pushed aggressively on q-commerce platforms and could also help the platforms to boost their average order values & profitability," said Kushal Bhatnagar- Associate Partner at Redseer Strategy Consultants.
