THRIVING IN TRANSFORMATION

The retail merchandise sector is set to flourish, driven by the influence of e-commerce

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The evolution of India’s e-commerce landscape over the past decade is nothing short of extraordinary. From its modest beginnings to the projected ₹90,000 crore in gross merchandise value for the 10th festive season, this industry has reshaped consumer behaviour, empowered MSMEs, and driven economic growth.

As India’s consumer spending dynamics continue to evolve, e-commerce remains a resilient and integral part of the retail landscape. With diversification, technological advancements, and growing consumer confidence, the future of e-commerce in India holds immense promise. The journey of the past decade serves as a testament to the industry’s adaptability and enduring impact on the Indian economy.

Festive season sales this year are expected to touch ₹90,000 crore in terms of gross merchandise value (GMV), boosted by meaningful global tailwinds, according to a report by Redseer Strategy Consultants. Sales in 2023 will be up 18% to 20% from last year’s festive month sales driven by about 140 million shoppers who are expected to transact online at least once during the season, the report added.

The year 2023 marks the tenth year of e-commerce festive month sales. This year, sales are likely to catalyze consumption demand as the economy emerges from the turbulence of the Covid-19 years, it noted.

“The Indian e-tailing has increasingly become the litmus test for consumer demand in India. The 10th festive season sale period is even more significant this year considering the recent slowdown in consumption and the almost three years of external shocks on the economy,” the report stated.

There are two major tailwinds supporting the growth of e-commerce festive sales in India. The year-on-year growth rates of nominal Private Final Consumption Expenditure (PFCE) in the pre-Covid-19 time used to be around 8% to 9%.