The recent festive week has proven to be a remarkable period for online marketplaces, which collectively reported sales worth an impressive $6.5 billion—or nearly ₹55,000 crore. This figure marks a 26% increase compared to the same week last year. As analyzed by Datum Intelligence, mobile phones, electronics, and consumer durables significantly contributed to these sales, representing about three-fourths of total figures.

A remarkable trend has emerged: more than half of the anticipated total e-commerce sales for the festive season were completed in just the first week. As some reports suggested, the expectation for this festive season is around $12 billion in gross merchandise value (GMV)—a substantial 23% rise from last year when the figures hovered around $9.7 billion.

Surprising demands indicate that shoppers, particularly those in smaller towns and cities, are inclined towards purchasing products with a higher average selling price (ASP). The trend seems to parallel a growing interest in utilizing EMI payment options. Companies in the sector have expressed concerns regarding their supply capabilities due to this unexpectedly high consumer demand.

Prominent market players like Flipkart, Amazon, and Meesho scheduled their annual festive sales—the Big Billion Days and the Great Indian Festival, respectively—beginning September 27, with a special early access feature for loyalty program members from September 26. Meesho’s Mega Blockbuster Sale, starting the same day, reported a staggering 40% increase in orders compared to the previous year. This surge is attributed primarily to a strong customer base emerging from tier-II cities, where nearly 45% of shoppers originated from tier IV and below.

Meesho’s co-founder and CEO, Vidit Aatrey, explained, “Our first week was much better than the plan, which means the demand was front-loaded. This indicates consumers are planning their purchases to ensure timely delivery for the festivals.” The company aims to expand its delivery capacities and found robust sales also extending into lesser-known regions.

Notably, Flipkart underscored its commitment to speedy deliveries, enhancing its logistics network to facilitate same-day and next-day deliveries. They observed robust demand rooted not just in major metro areas like New Delhi and Bengaluru, but also in tier-II+ markets, including cities such as Medinipur and Agartala.

To contextualize recent trends, more and more consumers are starting their festive shopping earlier than in previous years, aligning their purchases with significant festivals. Despite cultural reservations that might have previously encouraged shoppers to delay purchases during ‘Shradh’—a 16-day traditional period honoring ancestors—data has shown that consumer enthusiasm during this timeframe is maintaining momentum.

The swift start to sales in the current festive season proves a familiar pattern where a substantial 55-60% of total spending is often seen in early sales periods. Retailers anticipate another sales wave between Dussehra and Diwali, further emphasizing the importance of planning and supply chain efficiency.

Moreover, there’s a shifting consumer preference towards premium products, as noted by the Gurgaon-based brand Noise, which has reported an increasing interest in higher-priced audio and tech devices. Amazon India has similarly identified a significant uptick in demand for premium consumer electronics categories, particularly with products priced above ₹30,000 experiencing an impressive 30% year-over-year growth.

In summary, the festive week has not only set a glowing precedent for the e-commerce landscape but has also laid a foundation upon which companies can build their strategies for the rest of the season. By leveraging insights gained during this period, businesses can enhance their customer engagement and inventory management practices, ensuring that they are prepared to meet consumer demands effectively.