India’s Festive Season Online Shopping Hits Record Rs 1 Lakh Crore

India's major e-commerce platforms achieved a new milestone during the month-long festive season, amassing a record-breaking Rs 1 lakh crore (approximately $11.9 billion) in total sales, an impressive 23% increase from the previous year, according to industry data. This surge was largely driven by increased purchases from Tier II, III, and smaller towns and a rise in demand for premium products across various categories.

The top-selling period spanned Flipkart’s Big Billion Days and Amazon’s Great Indian Festival, starting September 26. Within the initial week alone, these platforms generated approximately Rs 55,000 crore ($6.5 billion) in sales, accounting for more than half of the season's total revenue. After a slight dip in the third week, sales surged again in the final week, fueled by various promotional offers and exclusive product launches.

Increased Demand from Non-Metro Cities

Amazon reported that over 85% of its shoppers hailed from non-metro regions, reflecting a strong rural and semi-urban consumer base. Additionally, several sellers on Flipkart witnessed 40-50% year-over-year growth in sales, supported by demand in smartphones, home appliances, fashion, and personal care. According to Satish Meena, an analyst at Datum Intelligence, “there was increased demand from Tier II-III and beyond, reflected across categories including smartphones, television sets, appliances, and fashion.”

Smartphones Lead the Sales Boom

Smartphones remained the most popular category, comprising 65% of total online smartphone sales during the festive season. Data from Amazon and Walmart-owned Flipkart indicates that premium and mid-premium smartphones performed exceptionally well. Flipkart highlighted that AI-driven features in Android smartphones piqued consumer interest, marking a 17% year-over-year rise in demand for high-end models. Amazon recorded its strongest annual growth for premium smartphones priced above Rs 30,000, with over 70% of these sales coming from Tier II and beyond.

High Demand for Luxury Brands and Premium Products

Luxury brands saw an upsurge, with Amazon’s premium offerings in large appliances and fashion recording a 400% spike compared to regular sales periods. In categories such as watches, fragrance, K-beauty, jewelry, and handbags, demand surged, illustrating a shift towards premiumization among Indian consumers. Falguni Nayar, founder and CEO of Nykaa, noted the significant growth in fashion sales, boosted by the ongoing wedding season and festive shopping.

Meesho’s Blockbuster Festive Sale

SoftBank-backed Meesho recorded a 40% increase in orders during its Mega Blockbuster Sale from September 27 to October 6. Categories such as children’s products, personal care, and home and kitchen items saw impressive growth rates of 75%, 60%, and 105% YoY respectively, illustrating a strong preference for affordable goods in these categories.

UPI Transactions Surge Amid Festive Sales

The surge in festive sales also had a noticeable impact on Unified Payments Interface (UPI) transactions, with 16.58 billion transactions recorded in October, marking a 45% increase year-over-year. Settlements through UPI amounted to Rs 23.5 lakh crore, up by 34% from the previous year, as reported by the National Payments Corporation of India (NPCI).

Rise of Quick Commerce and Direct-to-Consumer Brands

Quick commerce, or rapid delivery of essential items, exceeded expectations, generating around $1.1-1.2 billion in sales this season, according to Datum’s Meena. Growth was spurred by high demand in new regions, as e-commerce platforms expanded into additional cities. Amazon also reported a 700% YoY increase in homegrown D2C brands across categories like clothing, luggage, and cosmetics. Sleep solutions retailer Wakefit reported over 50% revenue growth, while personal care brand Pilgrim recorded 40-50% growth on marketplaces and 50% on its own channel.

Conclusion:

The record-breaking Rs 1 lakh crore in festive sales reflects the growing power of India’s e-commerce sector, which continues to benefit from both non-metro demand and a shift towards premium products. This season, consumers from Tier II and III cities drove impressive sales, especially for smartphones and luxury brands, indicating a significant trend toward digital adoption across various regions and demographics. With increased spending on UPI platforms and substantial growth in quick commerce and D2C brands, India’s digital economy is set for further expansion. This year’s festive season highlights the dynamic transformation of consumer behavior, paving the way for new opportunities and sustained growth in the e-commerce ecosystem.