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E-commerce Growth Moderates to 12-15% in Q1, Signaling a Slowdown from Last Year's 20% Pace
According to our recent forecast on Indian Online Retail, the e-commerce sector reveals a moderate growth rate of 12-15% during the first quarter of this year, marking a slowdown compared to the previous year's performance.
Several factors have contributed to this trend, including:
- Absence of major smartphone launches, traditionally a significant driver of online sales
- Fashion retailers focusing on clearing inventory, resulting in reduced promotional efforts
- Inflation impacting consumer spending habits and affecting the overall growth of online retail
Despite the sluggish market, certain segments have shown resilience, with beauty brands, in particular, continuing to demonstrate growth.
Additionally, the home furnishing category and offline sales have experienced an upward trajectory, indicating that consumers are still willing to invest in specific areas.
