Bengaluru
India’s e-commerce sector experienced a 12% growth during the festive season, reaching a gross merchandise value (GMV) of approximately Rs 1.18 lakh crore (around $14 billion). The growth, driven largely by tier 2 and 3 cities, highlights the increasing engagement of smaller towns in online shopping, according to a report on Wednesday.
The festive season, spanning from September 15 to October 31, saw strong consumer spending across multiple categories, including electronics, fashion, beauty, home furnishings, and groceries. While metro areas showed high demand for premium products like large appliances and electronics, more affordable items in fashion and beauty products led growth in smaller regions.
Smaller cities saw the highest growth in spending, with a 13% rise in 2024. Discounts and promotions helped tier 2+ customers purchase high-value products. Additionally, the rise in prepaid transactions further improved the shopping experience for consumers in these towns.
Fashion was the fastest-growing category, especially ethnic wear and accessories, which saw significant traction in smaller cities. The quick commerce sector also expanded to include electronics and home appliances to meet festive demand.
Despite slowing new shopper acquisition, per-shopper spending increased by 5-6%, signaling a sustained growth trajectory for e-commerce in India’s smaller cities.
