India’s festive season e-commerce has grown in both scale and diversity, with evolving consumer behaviour, shifting category preferences, and rising participation from smaller towns, according to a three-year analysis by Unicommerce, based on over 210 million festive season transactions processed through its platform Uniware.
Longer Shopping Windows
The festive shopping window has expanded from a week in 2022 to a month-long cycle in 2024, spanning multiple sale waves across Navratri, Dussehra, Karwa Chauth, Diwali, and Bhai Dooj.
Tier-2 & 3 Cities Take the Lead
Metros led early growth, but by 2024 their expansion slowed to just 2%, while tier-2 and tier-3 towns grew nearly 15%. These towns now account for more than half of festive orders, signaling Bharat’s growing e-commerce adoption.
Evolving Consumer Preferences
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2022: Electronics, appliances, and home décor were strong drivers.
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2023: Eyewear, beauty, and wellness gained momentum.
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2024: Health, pharma, and travel accessories joined the charts.
Fashion & accessories remain the top category, with Karnataka and Maharashtra driving apparel demand, while beauty & personal care grew steadily across states like Rajasthan, Himachal Pradesh, and Gujarat. Smaller towns such as Rohtak, Jodhpur, and Raipur also showed rising interest in home décor and furniture.
Shift to Prepaid Transactions
Prepaid orders have become the norm:
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Tier-1 & Metros: 77% in 2022 → 80% in 2023 → 77% in 2024
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Tier-2 & 3: 61% in 2022 → 63% in 2023 → 60% in 2024
This indicates a narrowing digital divide and growing trust in digital payments.
Looking Ahead: Festive 2025
Festive 2025 is expected to see strong growth, boosted by GST rate cuts on FMCG, textiles, and electronics, making products more affordable. Businesses are likely to highlight lower-tax items for value-driven buyers.
Quick-commerce and AI will play central roles:
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Q-comm: Enabling last-minute gifting and essentials in minutes.
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AI: Powering demand forecasting, inventory optimization, and personalized shopping journeys.
Together, they signal a festive season that’s faster, smarter, and more consumer-centric than ever.
