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Mid-year ecommerce sales spike sets the stage for cracking festive season

Mid-year ecommerce sales spike sets the stage for cracking festive season

Time of India16-07-2025
Ecommerce order volumes during the recent sale period grew 19% compared with a year earlier, according to market trackers and analysts.This sharp discounts-driven rise in consumer demand, across categories such as smart TVs, headphones, air conditioners, kids' essentials, and luggage, is seen setting the tone for the festive season that starts in September, according to brands and industry analysts.The July 11-14 sale window, which saw overlapping campaigns from marketplaces like Amazon India and Flipkart as well as direct-to-consumer brands, marked a notable uptick in volumes, according to ecommerce software company Unicommerce. Analysts say this momentum could help lift performance in the current quarter, offering some respite amid a broader slowdown in ecommerce growth.While tier-I and metro cities saw a 15% year-on-year rise in order volumes, tier-II and tier-III cities recorded faster growth at 21% and 22%, respectively during this year's sale period compared to 2024, Unicommerce said.This assumes significance as ecommerce companies look to rebound from sluggish growth last year, when the sector posted 10-12% annual growth as per a Bain-Flipkart report, compared with 20-30% till a few years ago.The sale events – such as Amazon 's Great Indian Festival Sale and Flipkart's The Big Billion Days – during the festive season typically account for almost half of the gross merchandise value these companies report in a year.Spokespeople for Flipkart and Amazon India said the platforms posted strong growth in consumer electronics, smartphones, beauty, fashion and other categories during the recent events.'Premium segments are performing exceptionally well, with high-end smartphones, TVs and consumer electronics showing double-digit growth led by Samsung, Apple, Sony , Lenovo and OnePlus,' an Amazon India spokesperson said.'TVs perform better during this (sale) period because they are appliances that people plan to buy and often wait for the best deals,' ecommerce consultancy firm Datum Intelligence's Satish Meena said. 'Tablets saw some increase – better than smartphones – but still remained under 10%. Standard headphones, on the other hand, have performed very well this time too. Even air-conditioner sales have exceeded expectations, despite the summer not being particularly strong.'Consumer electronics company Boat, luggage makers Eume and Uppercase, home appliances brand Atomberg, kitchen equipment manufacturer Solara and fashion brand Zouk posted strong sales during the July sale period.Boat saw a rise in sales during Prime Day, with overall growth in the audio category expected to exceed 20%, said the IPO-bound company's chief operating officer, Gaurav Nayyar. Kitchen appliance startup Beyond Appliances said it recorded a fivefold increase in sales over the last two days compared with business-as-usual (BAU).Atomberg saw double-digit growth in fan sales during the sale period, while its mixer grinder category posted an eightfold increase in volumes, the Mumbai-based consumer appliances maker said.Pradeep Krishnakumar, founder of fashion brand Zouk, said its sales rose fourfold across marketplaces compared with usual business levels. Shreyans Jain, cofounder of sports nutrition startup Nutrabay, said it saw a threefold jump in sales compared with BAU and a 43% increase over last year's sales.Luggage brand Uppercase witnessed a sixfold jump in sales during the sale period compared to normal days, with year-on-year growth of nearly 80%. Eume said its revenue for Q1 FY26 is roughly 80 % higher than the previous quarter and it expects a similar momentum in Q2.'We usually give a discount of 15-20% on a BAU day and during this promotion period, that will go anywhere between 40% and 45% depending on the stock that we have of the particular product. So, if we want to liquidate, this is the right time,' said Uppercase cofounder and managing director Sudip Ghose.Several executives said these sales marked the beginning of festive season preparations, with brands now ramping up their supply efforts with new product launches and category push.'One aspect of preparation is very supply-focused, where I think a lot of the inbounding of products into warehouses will start in about a month. We have a bunch of new products for the festive season that we will be launching,' Krishnakumar of fashion brand Zouk said.Brands are now revising their estimates for Diwali based on the current demand to have enough inventory ahead of the event.'Diwali is our key focus, and these numbers have prompted us to re-forecast for the year. Last year was relatively slow for both Amazon and the broader market, but this time, Prime Day is shaping up to be a strong indicator for the upcoming festive season. The positive signals we're seeing now are the reason we're recalibrating our plans,' said Solara's founder and chief executive Gopal Kolli.Uppercase's Ghose said the company has new product launches planned for the festive season, which also coincides with peak travel months, a period when categories like check-in luggage are expected to see strong demand.Fireside Ventures-backed kids' personal care brand Tuco Intelligent, which said it saw a twofold increase in sales, said it plans to launch new gifting SKUs in skincare, lotions, and makeup in time for Diwali.'Overall, consumer spending is returning to the market, so we can expect higher spending during the Diwali sales,' said Datum's Meena.
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