BOOMING BUSINESS

E-commerce companies are likely to see skyrocketing sales worth $11.8 billion this festive season

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Diwali, the festival of lights, is likely to bring in festive bonanza for Indian e-commerce companies with sales likely to rise 28% year-on-year (y-o-y) to $11.8 billion during the month, driven in large part by fashion and consumer electronics, according to research reports.

In Shopify Festive Season Report 2022, Canadian multinational e-commerce company Shopify has identified a noticeable shift in how consumers will shop.

According to the report, increase in online shopping is being driven by increasing awareness of festive sales, growing reach, targeted selection, and expansion of affordable products for shoppers across city types.

Sales reached $5.9 billion in the first week of the month, driven by the doubling of online shoppers during the festive season compared to 2018.

The Shopify report looks at the effects of the evolving retail landscape on the spending patterns of people in the country, especially at a time when the economy is unstable.

With cashless payments, online shopping, and plenty of deals and discounts, shoppers are spoilt for choice.

The Shopify report said that as more consumers continue to rely on online shopping for convenience, Indian merchants expect to register record-breaking sales during the 2022 festive season. Nevertheless, fashion, electronics and essentials top consumer wish lists.

A huge number of online shoppers hail from Tier-II and -III cities, and their numbers continue to grow at a great pace. They have in the past spent heavily on fashion, electronics and essentials.

Festive sales, the Shopify report said, will also boost online retail GMV (Gross Merchandise Value) - the total amount of sales a company makes from $52 billion in 2021 to $68 billion in 2022, a remarkable jump of 30%. The report said 85.82% of consumers plan to spend more than they have spent in previous years. Nearly 40% of consumers are expected to spend more than 10,000.