Fashion and premium electronics drive 2024 E-commerce festive sale boom: Redseer

Redseer Strategy Consultants has released key insights from the first leg of the 2024 e-commerce festive sale season, which ran from September 26 to October 6, 2024 (covering events such as Big Billion Days, Great Indian Festival, and Meesho Mega Blockbuster sale).

The findings indicate healthy growth across key categories, driven by strong demand for fashion and premium electronics. The 11-day event strategically spanned two weekends and included the national holiday of October 2, 2024, gaining additional momentum from the Navratri festivities that began on October 3, 2024.

With increased participation from e-commerce platforms, D2C brands, and quick-commerce players, consumer spending saw a remarkable surge.

Key Findings from Redseer’s E-commerce Festive Sale Analysis:

1. Fashion Leads the Charge

1. Fashion emerged as the top-performing category, propelled by high demand for ethnic wear, particularly men’s and women’s kurta and kurti sets, further fueled by the wedding season

2. Unbranded/value segment in  women’s apparel, daily-wear jewellery, and kids’ fashion also saw significant growth, with a notable boost from Tier 2+ markets. 

3. While winter wear showed slower growth due to prolonged summer conditions, demand is expected to increase later in October as the weather cools. Platforms are preparing for a strong surge in outerwear and winter apparel in the coming weeks.

2. Premium Electronics in High Demand

1. Seasonal changes across India and increased spending on premium models have driven growth, especially in metro areas.

2. ACs, refrigerators, and premium electronics are the main drivers of the segment.

3. Extended summers and rising humidity levels have boosted demand for ACs and refrigerators, particularly in under-penetrated regions.

4. Premium electronics like robotic vacuum cleaners and water purifiers have seen growth, particularly in Metro and Tier 1 cities as consumers upgrade to life-comfort products.

5. Premium TVs have performed well, but overall growth in the television segment has been slower.

3. Changing Landscape of Mobile Phone Sales

1. The broader mobile phone market experienced muted growth, but premium brands such as Apple continued to thrive. There was a noticeable shift of Android users to iOS, marking an interesting consumer trend. 

2. Quick commerce platforms saw an unexpected spike in mobile phone purchases, further emphasising the evolving role of these platforms.

4. Surge in Beauty, Personal Care, and Home category Sales

1. The Beauty, Grooming, and Home category saw an increase in the availability of low average selling price (ASP) items and new selections across various platforms.

2. The Beauty and Personal Care (BPC) segment, already experiencing high growth this year, continued its spree, with quick commerce players contributing by offering BPC products.

3. Home furnishings and décor saw growing sales, driven by new product selections and increasing consumer interest in upgrading their living spaces.

Commenting on the findings, Kushal Bhatnagar, sssociate partner at Redseer Strategy Consultants, said, “E-commerce Festive sales in 2024 have shown dynamic growth patterns, building on the momentum from last year. In 2023, the nine day festive event saw approximately 19% Y-O-Y growth over 2022. This was primarily driven by high average selling price (ASP) purchases such as mobiles, electronics, and large appliances, contributing to about 67% of the sales.

However, the 2024 festive season has been different. While the early phase followed a similar trend with high ASP products leading the charge, the latter half experienced strong demand for lower ASP items, particularly in fashion, which saw massive growth driven by ethnic wear and Tier 2+ markets. Apart from fashion, premium electronics and smaller categories such as beauty and home saw an uptick.

The northern region has shown relatively higher growth compared to the south, with pockets in the east also experiencing strong gains. Additionally, EMI options have been more widely utilised this year, and faster delivery times have reduced cancellations across platforms. A notable new trend in 2024 is the rise of mobile purchases through quick commerce platforms, further indicating the evolving nature of consumer preferences during the festive season.”