Festive Season to record 28% more online sales in 2022; Close to $12 Bn Mark

Online Sales

During the approaching holiday season, online sales in the nation are predicted to increase by 28% year over year to $11.8 Bn, according to a report by consulting firm RedSeer Consulting. 

Sales are predicted to exceed $5.9 billion in the first week alone, up from $4.8 billion in 2021, according to the report. In addition, compared to pre-pandemic holiday sales in 2018, the gross merchandise value (GMV) of online holiday sales is anticipated to increase threefold this year. 

According to the report, the holiday season begins on the first sales day and continues for around a week, including non-sale days, until Diwali. 

Sanjay Kothari, Associate Partner at Redseer Strategy Consultants, said, “We are forecasting 4X growth in the number of online shoppers from 2018. This growth has been driven by accelerated digital adoption and increasing penetration in tier 2+ cities. We expect this expanded customer base to reflect in higher sales during the festive sales period as well.”

The major eCommerce companies are preparing for the approaching season as they all want to profit from a portion of the holiday sales. Even though Flipkart and Amazon have not yet disclosed dates for holiday sales, both of the top e-commerce websites are progressively raising anticipation. 

The percentage of online consumers who participated over the festive week has also increased, rising from 18% in CY18 to a predicted 38% in CY22. 

“This is majorly due to increasing awareness of the festive sales among the shoppers, growing reach, targeted selection, and expansion of products within the affordability range for shoppers across city types,” Kothari said.

The introduction of new e-commerce models, such as live/video commerce, will help fuel the rise of online shoppers throughout the holiday season in addition to traditional e-commerce models, the report stated.

Due to the Covid-19 situation, the previous two holiday seasons were subject to numerous restrictions. In the last two years, the fashion category suffered as more individuals stayed at home. However, sales may return to normal during the forthcoming holiday season. According to the report, the fashion industry is expecting significant growth this year, led by an expanding customer base from cities outside of Tier-2. 

The fashion category is typically where new online buyers begin their searches. Consequently, they are likewise expected to share in that pie. The survey also stated that this year’s holiday sales are anticipated to see an increase in engagement from players who are driven by fashion.

Based on stronger offers and fresh launches, among other items, the mobile and electronics category is expected to remain solid. Additionally, it is anticipated that the global online retail GMV would reach $68 billion in 2022, up from $52 billion in 2021. 

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