The 2024 festive season in India has been an exciting time for shopping, with major e-commerce platforms like Amazon and Flipkart offering huge discounts and sales. The E-commerce platforms have crossed Rs.1 lakh crore sales in this festival season. In 2014, the sales were Rs.1218 crore and in 2024, the sales crossed Rs.1 lakh crore.
Quick commerce services like Blinkit, Zepto, and Swiggy Instamart also played a big role by delivering festive essentials and pooja items in just minutes, making shopping even more convenient.
While e-commerce has always been popular for large, high-value purchases, quick commerce has grown rapidly, providing a solution for last-minute festive shopping. Let’s break down how each of these sectors performed during the festive season.
E-Commerce Dominates Big-ticket Sales
E-commerce platforms like Amazon and Flipkart led the way in sales of expensive products. The total sales during the month-long festive season crossed ₹1 lakh crore (around $11.9 billion), which is a 23% increase compared to last year. During the first week of the season, sales reached ₹55,000 crore (around $6.5 billion) thanks to events like Flipkart’s Big Billion Days and Amazon’s Great Indian Festival, which started on September 26.
Key Products Driving Growth:
- Electronics: Gadgets like smartphones, TVs, and laptops saw the highest demand. Over 85% of Amazon’s customers came from smaller cities (Tier 2 and Tier 3), showing that people in these areas are increasingly buying high-tech products. Smartphones were the top-selling category, accounting for 65% of total smartphone sales, thanks to attractive deals and easy payment options.
- Beauty and Fashion: Beauty brands like Nykaa and Mamaearth saw major growth, especially during sales on platforms like Meesho. Amazon also saw a huge jump in sales of fashion and beauty items, with a 175% year-on-year increase in GenZ-focused fashion categories and a 400% rise in premium products like watches and perfumes.
- Home Decor: Sales of home decor, kitchen gadgets, and lighting also grew, with Amazon seeing over 60% of its new customers coming from smaller cities.
Quick Commerce: The Fast Choice for Last-Minute Shopping
Quick commerce has revolutionized last-minute shopping. Unlike traditional e-commerce, which may take hours or even days for delivery, quick commerce delivers items within minutes. This sector has grown beyond just groceries to include festive products, fashion accessories, and even tech gadgets.
Quick Commerce Growth:
- The quick commerce market in India is valued at $3.34 billion in 2024 and is expected to grow to $9.95 billion by 2029, according to Chryseum Report.
- Companies like Blinkit, Zepto, and Swiggy Instamart have expanded rapidly by setting up mini-warehouses called “dark stores” near customer clusters. This allows them to deliver products quickly, even to smaller cities.
Quick commerce platforms saw massive growth during the festive season. From groceries to fashion accessories like Diwali bangles, these services provided instant access to everything people needed in the last-minute rush. They also catered to specific festive items like sweets, dry fruits, and even gold coins during Dhanteras.
What Does This Growth Mean for Investors?
Both e-commerce and quick commerce are experiencing structural changes, driven by the rise in digital shopping and consumer demand for convenience. If you’re considering investing in these growing sectors, here are some insights:
- E-commerce Potential: E-commerce platforms continue to show strong growth, especially in electronics, beauty, and home products. Long-term investors may want to focus on companies that are leading digital retail transformation, as the sector is expected to keep expanding.
- Quick Commerce and FMCG: Quick commerce is particularly strong in the fast-moving consumer goods (FMCG) sector, such as groceries and household products. Investors interested in this shift may consider investing in companies that are leading the charge in this space.
- Consumer Technology and Premium Goods: Both e-commerce and quick commerce saw increased demand for premium products like electronics, fashion, and beauty. Investors can focus on companies that offer high-quality, branded goods, as these are becoming a major part of online shopping.
Conclusion: A Bright Future for Both E-Commerce and Quick Commerce
The future looks bright for both e-commerce and quick commerce in India. While e-commerce continues to dominate larger, planned purchases, quick commerce has become essential for consumers who need things quickly. Both sectors are growing rapidly, and it’s clear that there’s room for both to succeed in the Indian market.