The history of eCommerce is closely entwined with the history of the internet. Once the internet was available to the masses, eCommerce was a step away. One of the first sites of eCommerce was Amazon, which began in the USA.
Since then, convenience, safety, and the enjoyable user experience have ensured the exponential growth of the industry with thousands of businesses following in Amazon’s footsteps. Over the years, eCommerce has slowly but surely gained prominence and the pandemic has catapulted it into becoming the primary medium of shopping.
Let’s have a look at Ecommerce Diwali Sales over the years with expected 2024 Diwali sales.
The Growth of Ecommerce in India
The Ecommerce Diwali Festive Sales – History of the Decade
The Growth of Ecommerce in India
Ecommerce in India has emerged from a buzzword to the current daily reality and has experienced remarkable growth. It has successfully changed the way people transact. According to IAMAI (Internet and Mobile Association of India), the Indian eCommerce market recorded an exponential CAGR of 54.6% between the years 2007 and 2011. Within the four sectors of eCommerce, B2B (Business to Business), B2C (Business to Consumer), C2B (Customer to Business), and C2C (Customer to Customer), the B2C segment dominated the market with a 56% share in FY 2010-2011. The other segments, too, showed significant growth.
As the penetration of the internet and smartphones deepened, it directly affected the popularity and the volume of sales of eCommerce sites. Driven by the ‘Digital India’ program, the number of internet connections in India rose to 830 million in 2021. India’s online shopper base was the third largest globally, at 150 million in FY 2021, behind China and the US.
As per the reports, in 2022 the eCommerce market in India was $74.8 billion. By 2025 the growth is expected to touch $188 billion and to touch $350 billion by 2030.
Shubham Kumar
The Ecommerce Diwali Festive Sales – History of the Decade
The festive season of Diwali has always been a viable one commercially as people indulge in retail shopping. During the festive time, indulgence-based shopping is more sentimental and tradition-centric. Physical retailers used this festive time to attract customers with newer collections being offered at discounts. Stores used to be decorated and lively, and the general atmosphere was of joy and happiness.
Enter the world of eCommerce into the market and it changed the face of festival shopping in India. Retail shopping in India has gained tremendous momentum in the last decade. The Diwali festive season is the happiest for eCommerce retailers as their cash registers ring by the minute. Over the years, customers have built expectations of offers and promotions and the eTailers are more than happy to comply by reserving the best promotions and discounts for that season.
By 2012, eCommerce was well entrenched within the retail shopping fabric of the country. The festival season of that year saw some sites offering free home makeovers, wardrobe offers, and gift deliveries, as well as additional products instead of discounts, to attract consumers. Big players of the time in the eCommerce space, like eBay, began offering gifts like branded headphones, iPod shuffle, mobiles, iPads, and laptops to customers shopping between specific dates just at the onset of the Diwali festival. It also offered gifts like LED televisions for a purchase value ranging between INR 20,000 and INR 30,000.
The year 2014 was, unarguably, the pioneer year for Indian eCommerce as its potential encouraged many offline sellers to have an online presence. Online markets began fine-tuning their marketing strategies and strengthening their operational capacities before the festive season to ensure a smooth shopping experience for their customers between 2014 and 2016. The festive season eCommerce sales figures for the two years of 2015 and 2016 provided ample proof that eCommerce had a firm foothold within the Indian market.
The category Manager of Browntape Technologies had said – “Over the past 3 years, we have seen a 1.5x increase in sales YOY during the festive season period. It is a time when ticket sizes increase and both niche and regular product categories get a boost. In addition to bulk orders from customers, there is also an increase in the demand for gifting products and gift-wrap items. Marketplaces plan some category-focused promos, which translate into equal opportunity for all categories.”
This was proven when eCommerce players registered a 400% increase in new customers and a 10X sales growth for the Diwali festival within a span of 3 years.
Tanusha Verma
By 2015, shopping malls across the country were registering a sharp drop in customer footfall as eCommerce sales were surging. A survey by ASSOCHAM revealed – “In the wake of an unprecedented surge in e-commerce, shopping malls, already under huge pressure due to large vacant spaces, are expected to see a sharp decline in footfalls to the extent of 55.58% during the ongoing festive season this year.” eCommerce giants like Amazon, Flipkart, and Snapdeal recorded sales 3 times higher than in 2014.
By 2016, eCommerce sales began gaining traction with eCommerce recording online festival sales to the tune of INR 40 billion. India became the fastest-growing eCommerce market by seeing steady exponential growth with festive sales figures of INR 60 billion in 2017, INR 150 billion in 2018, INR 190 billion in 2019, and INR 290 billion in 2020.
The year 2021 was still in the throes of an economic struggle under the cloud of the COVID-19 pandemic. The festival season of 2021 was driven by affordability. eCommerce players were carefully building discounts and schemes like BNPL and bank tie-ups to offer the most competitive prices of top brands. However, resilient customer demands saw the festival season end on a high note of INR 1.25 trillion worth of sales, a 23% growth from the previous year.
The festive season in 2023 was expected to boost Indian eCommerce platforms, with projected sales totaling INR 90,000 crore. This represented a significant 18%-20% increase from the previous year, driven by an estimated 140 million online shoppers. These festive season sales were expected to contribute around 17% to the overall annual eCommerce sales for the year.
According to a RedSeer report, during the 2024 festive season, eCommerce is expected to generate over INR 100-120 thousand crore in gross merchandise value (GMV), which is a big increase from last year.
This rise in eCommerce sales is driven by a few key factors:
- Pent-up Demand: Especially in categories like mobiles and electronics, where people tend to wait for festive deals. Fashion demand has been slower this year but is expected to pick up.
- Premium Products: Brands are offering premium products at discounted prices to encourage shoppers to buy high-end items.
- New and Trendy Items: New products and limited-time ranges, especially in fashion, will be launched during the festive season to attract shoppers.
- Steady Growth: Ongoing growth in segments like beauty, personal care (BPC), and quick commerce (q-commerce), with a boost during the festive period.
Conclusion
There is no doubt that eCommerce is here to stay, especially during the festival season. The convenience of shopping they offer, along with the discounts, offers, and promotions are far more attractive than what physical retail can offer. With that said, the oncoming festival season of 2024 is guided by high optimism, the euphoria of overcoming the global pandemic, and a celebratory mood returning to the general masses.
Ecommerce retail sites have already begun or are on the verge of beginning their second phase of Diwali festival sale offers. The upward trajectory of eCommerce allows for a highly successful season, bypassing the sales figures of last year.
FAQs
What was the Diwali festive sales revenue in 2024?
As per reports, online festive season sales are set to touch $12 billion this year.
What is the growth rate of e-commerce in India?
During the 2024 festive season, eCommerce is expected to generate over INR 100-120 thousand crore in gross merchandise value (GMV), which is a ~20% increase from last year. By 2025 the growth is expected to touch USD 188 billion and to touch USD 350 billion by 2030.
What are eCommerce retail sales?
Ecommerce or electronic commerce is the trading of goods and services online.
What is eCommerce market size in India?
The current value of India’s eCommerce market is $70 billion, making up about 7% of the country’s total retail market.
What is Diwali date 2025?
Diwali may fall on or around 21 October in 2025.
