With festive season all set to knock on our doors, e-commerce is well and truly gearing up for the party. As it is, the Indian economy is looking at consumption boom and festive season is ensuring that all sectors get to enjoy the celebration. As per the recent Festive 2024 report by Redseer, e-commerce is likely to achieve a remarkable (estimated) 20% year-on-year (YoY) growth in this festive season. The report says this surge is a testament to the strategies employed by businesses in response to earlier macroeconomic challenges. This resurgence was anticipated, emphasizing on how businesses are bouncing back, the positive festive spirit among consumers, and the promise of consumption revival this festive season.
“Festive season is likely to help the big 3 of e-commerce (i.e. mobiles, electronics and fashion) to gain momentum, given their performance this year has been slightly subdued”, says the report.
Another report says many brands are strategically tying up with e-commerce platforms to cater to customers’ aspirational needs and penetrate into tier II and III markets. So, they want to partner where leading platforms can attract customers via lucrative discounts & offers available at large-scale festive events. Also, online platforms offer a variety of incentives and support mechanisms to brands, including sponsorships, prime ad placements, growth-linked waivers, price subsidies, and analytical tools to identify top-selling products.
“With creative affordability models and the extra backing from these platforms, the e-commerce sector is poised for substantial growth, anticipating a 20% year-on-year increase and exceeding INR 100,000 crore in Gross Merchandise Value”, the Redseer report says further.
Nine West, a footwear brand from Bata presents the case in point. Ahead of the festive season, Nine West has announced its launch on Myntra. By blending contemporary style with classic elegance, the footwear aims to elevate women’s everyday wardrobes while redefining modern fashion. This collaboration strengthens the brand’s omni-channel strategy, allowing Nine West to reach fashion-forward women across the country by combining global trends with local style. The collection features over 100 designs tailored to the fast-paced lifestyle of urban women in India.
Sharad Thakur, VP and Head, E-commerce, Bata India said, “We are excited to expand our relationship with Myntra with the exclusive online marketplace launch for Nine West. We’ve crafted this collection as a versatile wardrobe for the modern woman, seamlessly blending elegance and practicality to match a fast-paced urban lifestyle. We’re confident these pieces will transform everyday fashion, empowering women to navigate their day with both confidence and style.”
That’s not all. E-commerce is also looking for strategies and devising methods to compete with quick commerce giants. “In line with the ongoing rapid growth spree, q-commerce platforms are anticipating approx. 100% YoY growth in the festive period. Till now, quick commerce has helped push festive collections in the FMCG & beauty category, through combo boxes and gifting items such as chocolates & bouquets, sweets, dry fruits, and food & beverages. However, this season, verticals such as home appliances, beauty gadgets, and smaller electronics are likely to be pushed aggressively”, says the report.
To counter this, many e-commerce platforms are introducing rapid delivery services. Flipkart has recently launched its quick delivery service by the name of ‘Minutes’. The e-commerce giant reported surprised a customer from Bengaluru recently when it delivered brand-new iPhone 15 in just 8 minutes, thanks to its 'Minutes' service. In a video shared online, the delighted customer expressed his joy, stating, "I just got my iPhone 15 from Flipkart in under just 8 minutes, awesome delivery experience. Thanks a lot, Flipkart!”
With e-commerce and quick commerce battling it out this festive season, it will be interesting to see who makes a bigger dent in the revenue share. However, being spoilt for choice and being gratified instantly, it is the customer who seems to be emerging as the ultimate winner for now.
