Bengaluru, Nov 13 || Driven by tier 2 and 3 cities, India’s e-commerce sector registered a gross merchandise value (GMV) of approximately $14 billion (more than Rs 1.18 lakh crore) in this year’s festive season, marking a 12 per cent growth over last year’s festive period, a report said on Wednesday.
This growth was fuelled by resilient consumer spending across categories, including quick commerce, electronics, fashion, beauty and personal care (BPC), home furnishings and groceries, according to the report by Redseer Strategy Consultants.
Higher engagement with premium products and low average selling price (ASP) items alike indicated a dynamic consumer market this festive season (from September 15 to October 31).
While high ASP products such as large appliances and premium electronics saw strong demand in metro areas, affordable items in fashion and BPC continued to drive frequency and growth in the other regions, the report mentioned.
“The 2024 festive season reassures us of Bharat’s (tier 2+ customers) spending potential. With these customers further cementing their trust in e-commerce and bringing a larger share of wallet online, we are ready to witness a continued spell of e-commerce growth in the next few years,” said Kushal Bhatnagar, Associate Partner, Redseer.
Smaller cities displayed the highest growth rate in spends, climbing to 13 per cent in 2024, Availability of discounts enabled tier 2+ customers to afford high-ASP products across categories.