Premiumisation and pent-up demand are set to drive festive demand in 2024, according to a new report from Redseer Strategy Consultants. The͏͏ report͏͏ reveals͏͏ that͏͏ brands͏͏ are͏͏ concentrating͏͏ on͏͏ offering͏͏ premium͏͏ packs͏͏ at͏͏ discounted͏͏ prices͏͏ to͏͏ encourage͏͏ aspirational͏͏ buying͏͏ and͏͏ address͏͏ pent-up͏͏ demand͏͏ in͏͏ categories͏͏ such͏͏ as͏͏ mobiles,͏͏ electronics,͏͏ and͏͏ fashion.
E-commerce͏͏ Set͏͏ for͏͏ 20%͏͏ Year-on-Year͏͏ Growth:
The͏͏ report͏͏ highlighted͏͏ that͏͏ e-commerce͏͏ is͏͏ projected͏͏ to͏͏ grow͏͏ by͏͏ 20%͏͏ year-on-year,͏͏ reaching͏͏ a͏͏ gross͏͏ merchandise͏͏ value͏͏ (GMV)͏͏ of͏͏ INR 100,000-120,000͏͏ crore͏͏ during͏͏ the͏͏ 2024͏͏ season.
Continue͏͏ Exploring:͏͏ E-commerce͏͏ sales͏͏ in͏͏ India͏͏ expected͏͏ to͏͏ hit͏͏ $12͏͏ Bn͏͏ this͏͏ festive season,͏͏ up͏͏ 23%͏͏ from͏͏ last͏͏ year
New͏͏ Assortments͏͏ &͏͏ Categories͏͏ Drive͏͏ Festive Offerings:
According͏͏ to͏͏ the͏͏ report,͏͏ new͏͏ assortments͏͏ are͏͏ being͏͏ introduced͏͏ during͏͏ the͏͏ festive͏͏ period͏͏ in͏͏ categories͏͏ like͏͏ fashion,͏͏ while͏͏ segments͏͏ such͏͏ as͏͏ beauty͏͏ and͏͏ personal͏͏ care,͏͏ along͏͏ with͏͏ quick͏͏ commerce͏͏ (q-commerce),͏͏ are͏͏ expected͏͏ to͏͏ see͏͏ significant͏͏ festive͏͏ growth.
“Mobiles͏͏ and͏͏ electronics͏͏ continue͏͏ to͏͏ be͏͏ key͏͏ drivers͏͏ of͏͏ value͏͏ growth͏͏ this͏͏ festive͏͏ season,͏͏ especially͏͏ as͏͏ consumers͏͏ are͏͏ drawn͏͏ to͏͏ affordability͏͏ options͏͏ that͏͏ make͏͏ premium͏͏ products͏͏ more͏͏ accessible.͏͏ Additionally,͏͏ seller͏͏ platforms͏͏ have͏͏ the͏͏ potential͏͏ to͏͏ unleash͏͏ pent-up͏͏ demand͏͏ in͏͏ this͏͏ category͏͏ by͏͏ optimising͏͏ pricing͏͏ and͏͏ selection,”͏͏ said͏͏ Kushal͏͏ Bhatnagar,͏͏ associate͏͏ partner͏͏ at͏͏ Redseer͏͏ Strategy͏͏ Consultants.
Expansion͏͏ of͏͏ Quick͏͏ Commerce͏͏ into͏͏ New͏͏ Categories:
Quick͏͏ commerce,͏͏ which͏͏ gained͏͏ significant͏͏ traction͏͏ in͏͏ 2023,͏͏ is͏͏ expected͏͏ to͏͏ account͏͏ for͏͏ around͏͏ 8%͏͏ of͏͏ overall͏͏ e-commerce͏͏ growth͏͏ during͏͏ the͏͏ festive͏͏ season͏͏ in͏͏ 2024,͏͏ an͏͏ increase͏͏ from͏͏ 5%͏͏ last͏͏ year.͏͏ Initially͏͏ centred͏͏ on͏͏ grocery͏͏ deliveries,͏͏ quick͏͏ commerce͏͏ has͏͏ now͏͏ expanded͏͏ into͏͏ beauty͏͏ and͏͏ small͏͏ electronics,͏͏ driven͏͏ by͏͏ consumers’͏͏ growing͏͏ demand͏͏ for͏͏ fast,͏͏ on-demand͏͏ delivery,͏͏ according͏͏ to͏͏ the͏͏ report.
Newer͏͏ categories͏͏ like͏͏ home͏͏ and͏͏ kitchen͏͏ appliances͏͏ are͏͏ expected͏͏ to͏͏ be͏͏ actively͏͏ promoted͏͏ on͏͏ quick͏͏ commerce͏͏ platforms,͏͏ which͏͏ could͏͏ help͏͏ these͏͏ platforms͏͏ enhance͏͏ their͏͏ average͏͏ order͏͏ value͏͏ and͏͏ profitability,͏͏ Bhatnagar͏͏ said.
Brands͏͏ are͏͏ adopting͏͏ multi-channel͏͏ strategies͏͏ to͏͏ enhance͏͏ sales,͏͏ showcasing͏͏ premium͏͏ products͏͏ through͏͏ offline͏͏ modern͏͏ trade͏͏ outlets͏͏ and͏͏ direct-to-consumer͏͏ channels͏͏ to͏͏ preserve͏͏ exclusivity.͏͏ Simultaneously,͏͏ mid-range͏͏ products͏͏ are͏͏ being͏͏ promoted͏͏ across͏͏ e-commerce͏͏ marketplaces͏͏ to͏͏ maximise͏͏ reach͏͏ and͏͏ attract͏͏ an͏͏ aspirational͏͏ customer͏͏ base,͏͏ the͏͏ report͏͏ stated.
