New Delhi: A significant increase in consumer enthusiasm for shopping during this festive season is expected this year with the festive sales projected to grow by 23 per cent reaching an impressive $12 billion (or approximately ₹1 lakh crore), a 2024 report from market forecaster Datum showed.
However, the report advised shoppers to carefully go through the return and refund policies before making online purchases as cybercrooks tend to be more active during this time.
On shopping trends, experts said the three-month festive season consistently sees the highest shopping activity every year. With the upgrades in technology and online shopping, gathering these statistics has become much simpler.
The objective of the report was to understand the shopping behaviour of Indian consumers during the festive season. From the start of the Big Billion Days/Great Indian Festival to November 3rd (Diwali), the e-commerce market is expected to expand significantly. To prepare this report, an online survey was conducted with 2,000 adults—comprising 55% males and 45% females—across 20 Indian cities from September 10 to 20.
Category-wise Spending
According to the report, the mobile and fashion categories are expected to dominate festive spending, together accounting for 50% of total sales. Specifically, mobiles are predicted to make up 29.9% of the overall sales valued at Rs 1 lakh crore, while the fashion segment will represent 19.6%. Additionally, electronics and consumer durables are expected to account for 17.5%. Other notable categories include Big Gadgets & More (BGM) at 13.8 per cent, Grocery at 13 per cent, Beauty and Personal Care at 4.3 per cent and other categories at 1.9 per cent.
Shopping Trends
The survey reveals that 68 per cent of respondents plan to purchase fashion items—clothing, accessories, and footwear—during this festive season. Additionally, 53 per cent intend to buy groceries, 48 per cent are looking to purchase beauty and personal care products, 47 per cent plan to buy smartphones and 45 per cent are interested in consumer electronics (excluding smartphones).
Key Highlights
The report showed that 65 per cent of online buyers are expected to spend more during this festive season and 79 per cent of shoppers will start shopping early with 35 per cent planning to start shopping 15 days before Diwali. Among respondents from metros, 71 per cent indicated they would spend more this festive season while 60 per cent of festive buyers anticipate spending over ₹15,000.
Be Vigilant During Shopping Season
Professor Shriram Khanna, Managing Editor of Consumer Voice, said the period from Navratri to December is the time when people go on a shopping spree. In fact, during October, November and December, consumers make up about 40-50% of total sales for the entire year—a trend that has remained steady over the years.
He pointed out that while online shopping has become a big part of this, it wasn't always the case. Previously, sales data was scattered among various retailers, but now it’s largely held by a few online sellers, making it much easier to track. So, accessing these sales figures isn’t surprising at all.
However, he also cautioned that some retailers may use clever tactics to boost their profits. During the busy seasons, customers need to be proactive and check the return policies of the stores they’re buying from before placing an order.
International consumer policy expert Bijon Mishra told ETV Bharat that online sales in India have grown significantly, providing a lot of convenience to consumers. Sitting at home, they have the freedom to show their purchasing power. However, the main challenge of refunds and exchanges is yet to be overcome. There have been numerous complaints about wrong items being sent, with no options for refund or return. The government needs to come up with a robust mechanism for consumer protection.
He suggested that the Central Consumer Protection Authority should enforce stricter rules for returns and exchanges to protect consumers.
Timeline of Festive Sale
2014: ₹1,218
2015: ₹1,925
2016: ₹6,385
2017: ₹10,093
2018: ₹19,830
2019: ₹33,796
2020: ₹47,409
2021: ₹58,405
2022: ₹69,800
2023: ₹81,000
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