Bengaluru 8th September : As India is about to enter the holiday season, sales online during the festive period are expected to top $11.8 billion, which is a 28 percent increase from last year, according to a report on Thursday.The month of festivities is usually defined as a time that begins at the beginning of the sale and lasting up to Diwali week.
In the first week of Christmas the sales are expected to be $5.9 billion, which is an increase of 28 percent from $4.8 billion in the previous year according to Redseer Strategy Consultants.
Comparing to pre-pandemic sales in 2018 the report projects an increase of 3 times in the online sales of festive gross merchandise value (GMV) this year.
“We expect to see a four-fold growth in the amount of online shoppers in the year 2018.This growth has been fueled by the rapid growth of digital adoption and growing use in Tier 2 cities.” stated Sanjay Kothari Associate Partner of Redseer.
Participation of online shoppers during the Christmas season has increased from 18 percent in the CY18 period to 38 percent in the CY22.
“This is mostly due to the increased awareness of the sales during the holidays for shoppers, the increasing reach, targeted selection, and growth of items within the affordable range for shoppers of all the city,” Kothari added.
The dramatic increase in sales during the holidays will boost the total online retail GMV which was $52 billion in 2021, to rise by 30 percent to total $68 billion in 2022 in 2022, according to the report.
In the coming year, the category of fashion is expected to witness a substantial growth, driven by an expanding number of shoppers from cities in Tier 2+ cities as well as first-time shoppers who tend to start their online shopping experience with fashion.
The category of electronics and mobile phones is expected to be strong during the holiday sales due to more attractive deals and the launch of new products.
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