The Indian festive e-commerce market is projected to reach $12 billion between October and December this year, marking a significant 23% increase from last year’s $9.7 billion, according to recent insights from Shiprocket, an e-commerce enablement platform. This growth is expected to be driven by robust demand in sectors such as fashion, electronics, beauty, and personal care, with quick commerce anticipated to contribute $1 billion in gross merchandise value.
Factors contributing to this surge include improved internet access, rising disposable incomes, and enhanced digital literacy in Tier-2 and Tier-3 cities, which have collectively facilitated deeper digital penetration. As a result, it is estimated that approximately 60% of online festive orders will originate from non-metro areas.
An October report by Datum Intelligence indicated that festive sales in the first week alone totaled ₹54,500 crore, underscoring the increasing prominence of online shopping in India. Weekend sales significantly impact overall performance, with Saturdays and Sundays together accounting for 27% of total festive sales—14% on Saturdays and 13% on Sundays.
Furthermore, India’s e-commerce export market, currently valued at $3-4 billion, is projected to expand dramatically to $200-300 billion by 2030. This growth will be propelled by MSMEs leveraging global markets and benefiting from government initiatives like the Directorate General of Foreign Trade (DGFT). Cross-border sales reportedly grew by 15-20% in 2023, with MSMEs capitalizing on demand for handicrafts, home décor, and fashion.
“India’s cross-border e-commerce exports, presently valued at around $2-4 billion, have the potential to skyrocket to $200-300 billion by 2030. However, 70% of the SMEs we interacted with were initially hesitant to pursue cross-border exports due to various obstacles. This prompted us to launch Shiprocket X, aimed at assisting MSMEs in overcoming the primary barriers to entering markets like the US,” explained Akshay Ghulati, CEO of International Shipping. He emphasized that streamlining compliance requirements, such as simplifying Foreign Inward Remittance Certificates (FIRC) regulations for low-value shipments and enhancing the efficiency of returning undelivered products to India, would significantly boost this growth.
Source: Fortune India
