E-commerce Festive Sales Poised to Hit Rs 1.2 Lakh Crore in 2025, Driven by Surging Consumer Sentiment

2 min read     Updated on 28 Aug 2025, 06:47 PM
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Overview

The Indian e-commerce sector is projected to reach Rs 1.2 lakh crore in online sales during the 2025 festive season, a 27% increase from the previous year. Urban and rural non-essential spending has increased significantly. Seven out of ten online shoppers plan to increase their festive spending. Quick commerce is expected to generate $1.60 billion in sales, accounting for 12% of total online sales. Amazon remains the preferred platform, with Blinkit rising to fifth position. Mobile and lifestyle categories are expected to account for 50% of festive sales, while grocery, appliances, and personal care categories are anticipated to gain market share.

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*this image is generated using AI for illustrative purposes only.

The Indian e-commerce sector is gearing up for a record-breaking festive season in 2025, with online sales projected to reach a staggering Rs 1.2 lakh crore, according to a recent report by Datum. This forecast represents a robust 27% increase from the previous year, signaling a significant upturn in consumer spending and confidence.

Urban and Rural Spending on the Rise

For the first time in three years, urban consumer sentiment has turned positive, with non-essential spending witnessing a substantial 37.60% surge in July 2025. Even more impressive is the growth in rural areas, where non-essential spending has skyrocketed by 54.70%, reaching a two-year high. This resurgence in both urban and rural markets paints a promising picture for the upcoming festive season.

Increased Festive Spending Intentions

The report highlights a notable shift in consumer behavior, with seven out of ten online shoppers planning to increase their festive spending compared to 2024. This widespread intention to spend more during the festive season is likely to be a key driver behind the projected growth in e-commerce sales.

Quick Commerce Gains Momentum

Quick commerce is emerging as a significant player in the e-commerce landscape, expected to generate $1.60 billion in sales during the festive season. This represents approximately 12% of total online sales, underscoring the growing importance of rapid delivery services in the Indian market.

Platform Preferences and Category Shifts

Amazon continues to maintain its position as the preferred platform among consumers. However, the landscape is evolving, with Blinkit making significant strides to secure the fifth position, outpacing several competitors in the process.

While mobile and lifestyle categories are expected to account for 50% of festive sales, their market share is projected to see a slight decline. On the other hand, categories such as grocery, appliances, and personal care are anticipated to gain market share. This shift could be further amplified by potential GST rate cuts in these categories.

Category-wise Sales Distribution

Category Market Share Trend
Mobile and Lifestyle 50% Slight decline expected
Grocery Increasing Potential boost from GST cuts
Appliances Increasing Potential boost from GST cuts
Personal Care Increasing Potential boost from GST cuts
Quick Commerce 12% Emerging trend

The e-commerce sector's projected growth to Rs 1.2 lakh crore in festive sales for 2025 reflects a robust recovery in consumer confidence and spending patterns. With both urban and rural consumers showing increased willingness to spend, and the rise of quick commerce, the Indian e-commerce landscape is poised for a transformative festive season. As categories like grocery and personal care gain prominence, and with potential policy support through GST rate cuts, the industry appears well-positioned for sustained growth and evolution in the coming years.

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India's E-Commerce Sector Set for Festive Season Boom with Rs 1.15 Lakh Crore in Sales

1 min read     Updated on 26 Aug 2025, 09:30 PM
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Jubin VergheseScanX News Team
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Overview

India's e-commerce industry expects GMV to surge to over Rs 1.15 lakh crore during the festive season, with a 20-25% year-on-year growth. Quick Commerce and Value Commerce segments show strong momentum, growing at 150% and 30-35% respectively. Growth drivers include repo rate cuts, increased tax-free income limits, rural income growth, and potential GST rationalization. Fashion, Beauty, Personal Care, and Home categories anticipate over 20% growth, while Grocery expects 80-90% growth. Horizontals are projected to drive about two-thirds of festive sales.

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*this image is generated using AI for illustrative purposes only.

India's e-commerce industry is gearing up for a spectacular festive season, with projections indicating a surge in gross merchandise value (GMV) to over Rs 1.15 lakh crore. This represents a robust year-on-year growth of 20-25%, according to a recent report by Redseer Strategy Consultants.

Accelerated Growth

The anticipated growth rate for this festive season is nearly double that of last year, signaling a significant acceleration in the e-commerce sector. Looking ahead, the industry is expected to close 2025 with an impressive 17-22% growth, marking its strongest performance in three years.

Emerging Trends

Two segments within the e-commerce landscape are showing particularly strong momentum:

  1. Quick Commerce: Demonstrating a remarkable pre-festive growth of 150%
  2. Value Commerce: Expanding at a rate of 30-35%

Both these segments are not only thriving in metropolitan areas but are also making significant inroads into tier-2 and tier-3 markets, indicating a broadening of the e-commerce footprint across India.

Key Growth Drivers

Several factors are contributing to this bullish outlook:

  • Repo rate cuts
  • Increased tax-free income limit from Rs 5 lakh to Rs 12 lakh
  • Rural household income growth of 12% over four years
  • Expected GST rationalization with simplified slabs of 5% and 18% by Diwali, potentially making goods cheaper

Category Performance

While the e-commerce sector as a whole is poised for growth, performance varies across categories:

Category Expected Growth
Fashion, Beauty, Personal Care, and Home Over 20.00%
Grocery 80.00-90.00%

The grocery segment's exceptional growth is primarily driven by the quick commerce boom.

Festive Season Outlook

Horizontals are projected to be the powerhouse of the festive season, expected to drive approximately two-thirds of all festive sales. This underscores the importance of multi-category platforms in capturing consumer interest during peak shopping periods.

As India's e-commerce sector continues to evolve and expand, this festive season could mark a turning point, setting the stage for sustained growth in the coming years. With a combination of favorable economic factors and changing consumer behaviors, the industry appears well-positioned to capitalize on the festive spirit and drive significant sales across various product categories.

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