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On 25th September, Amazon accounted the dates for 2023 Great Indian Festival Sales. The sales event for this year will begin on October 10th, with deals beginning on October 9th for Prime members. For categories like television, home appliances, mobile phones, fashion, and consumer durables, these months account for a sizeable amount of annual revenues.
According to estimates from Datum, online shoppers spent ~$8.9 billion throughout the festive season in 2022, with $5.6 billion coming in the first week. The online retail market was $52 billion in 2023, which implies that 17% of the year's sales ($9 billion) happened in a single month, and 11% of the year's sales happened during the festive week.
In 2023, Festive season sales by online players are in their 10th year after the start in 2014 by Flipkart with Big Billion Days. Starting from ₹1,214 core in one day during 2014 sales this year the festive market is expected to reach ~₹81,000 crore in 2023.
First Week of Sales is the Most Significant for Brands
First week of sales starting from 10th October is when majority of customers will spend. 40% of the online buyers will spend during this period with a large share of customers in tier 3 starting ealry to get the products on time. Last year out the $8.9 billion in sales fruing frstive period $5.6 billion came from the first week. This week is often characterized by high levels of consumer excitement and engagement, with many people looking for the best deals and discounts.
We expect 60% of sales happenign in the first week of the sales starting form 10th October
58% of Online Buyers Will Spend More with Customers in Tier 2 & Tier 3 Leading
58% of online shoppers are planning to increase their spending during this year's festival season. This significant increase in spending is likely driven by several factors, including pent-up demand from the past few years, higher disposable income, and the rise of e-commerce in India. Launch of products during this period also plays a key role in more spendign other than the planned pruchase of big ticket items like TV, appliances and furniture due to the availablity of better prices and interest free EMIs.
72% online buyers in Tier 2 & 3 are going to spend more online during this seaosn as compared to 67% in metro and 63% in Tier 1 cities.
The trend is expected to continue as more people in these cities become aware of the convenience and affordability of online shopping.
Mobile to Lead in Value followed by Fashion and Consumer Durables
Mobile category powered by smartphones is the largetst category by value during festive sales.
However, only 51% of online customers are anticipated to increase their spending on this category this year, which is a sign of the weaker enthusiasm surrounding it when compared to grocery at 64% and fashion at 63%.
Marketplaces are the Preferred Source of Researh Before Making the Festive Purchase
With the wide range of products, competitive prices, and ease of comparison, marketplaces are providing consumers with a convenient and efficient way to research their purchases before making a decision. This is more applicable during the festive season when people are looking to acquire the greatest deal possible.
71% of the online buyers are expected to use Amazon for research closely followed by Flipkart at 70%.
Compare this with search engine which is expected to be used by 47% of the online buyers. This will lead to more advertising spend going on marketplaces to make it easy for brands to put their products in front of the customers.
We expect a significant jump in advertising spend by brands on marketplaces during this festive period.
Research Objective & Methodology
Research Objective: To understand the shopping behaviour of Indian consumers in the upcoming festive season
Festive Season: Starting from the first day of BigBillion Days/Great Indian Festival to 15th November (Diwali)
Research Method: Online survey conducted 2,000 online adults across 20 cities in India between 1st Sep to 15th September 2023
