Festive FOMO: How India’s Quick Commerce is Delivering Joy at Lightning Speed
Sep 27, 2024
The festive season in India is synonymous with grand celebrations, cultural rituals, and, of course, shopping! As festivities ramp up across the country, so does consumer demand, and e-commerce platforms are perfectly poised to capitalize on this surge. From sweets to smartphones, these platforms are offering irresistible deals and faster deliveries than ever before.
A NielsenIQ report reveals that 31% of Indian shoppers use quick commerce for core needs like groceries, and 39% use it for top-ups. This behavior aligns perfectly with festive shopping patterns, where consumers often find themselves making last-minute purchases for sweets, decorations, or gifts. This trend is expected to continue as more consumers shift toward digital platforms for their daily needs.
A 23% Surge: E-Commerce’s Record-Breaking Festive Season
As per Markets and Data's Report, India's quick commerce market was valued at USD 3.05 billion in FY2024 and is expected to reach USD 13.38 billion in FY2032, with a CAGR of 20.3% for the forecast period between FY2025 and FY2032. This festive season, India’s e-commerce sector is expected to witness its most successful period yet, with sales projected to hit $12 billion, according to a Datum Intelligence report. This represents a significant 23% jump from last year’s $9.7 billion. What’s driving this surge? A combination of deep discounts, exclusive festive deals, and the convenience of shopping from home.
While quick commerce focuses on daily essentials and smaller items, larger e-commerce platforms like Flipkart, Amazon, and Meesho continue to dominate sales of high-ticket amd premium items like smartphones, large appliances, and fashion during festivals. According to Datum Intelligence, this trend will only intensify, with high-end smartphones like the iPhone 16 expected to dominate the festive sales charts.
In fact, mobile phones and fashion items account for 50% of total festive sales, making them critical categories during this period for deal hunting consumers. But the real disruptor this year is quick commerce with the ability to deliver goods within minutes, making it the go-to option for last-minute festival essentials.
While grocery shopping has been the bread and butter of quick commerce, platforms like Zepto are expanding their horizons to include a wider variety of products. Zepto, for example, has added electrical appliances, beauty products, and gifting options to its festive catalog. This diversification is a smart move, as it allows the platform to serve both the essential and luxury needs of its customers.
Instant Gratification stealing the show across regions
What was once a novelty is now a necessity—quick commerce is redefining how Indian consumers shop during festivals. Platforms like Zepto, Blinkit, and Swiggy Instamart have become household names by offering deliveries within just 10 to 20 minutes. In fact, Zepto, which began by delivering apples in a flash, now offers a diverse range of products from sweets to iPhones—literally making it possible to order apples and Apples in the same transaction. This has enabled such platforms to capture a diverse audience, catering to both essential and luxury needs.
Quick commerce is projected to contribute $1 billion to the overall e-commerce sales this festive season. And it’s not just groceries driving this trend, but festive requirements. Zepto, for instance, reported a 5x increase in modak sales during Ganesh Chaturthi, and 10x times increase in festive décor.
Mumbai took the lead with over a third of all modak orders, while Bengaluru saw pedas being the sweet of choice. Delhi-NCR and Hyderabad were all about laddoos, with nearly half of the country’s laddoo orders coming from these two regions.
How E-Commerce Giants Are Prepping for a Massive Sales Surge
Despite the roaring success of e-commerce during festivals, not all consumers are rushing online. A survey by Local Circles revealed that 70% of respondents still prefer shopping in physical stores during festivals. While the convenience of e-commerce is hard to beat, traditional shopping retains its charm, especially in smaller towns and cities where online shopping hasn’t fully penetrated.
However, e-commerce platforms are countering this by expanding into these untapped markets, and also investing eavly in infrastructure to ensure theu can meet the growing demand across all regions. For instance, Amazon’s strategy of opening fulfilment centers in non-metro areas ensures that customers in smaller cities can access the same deals and speedy deliveries as their metro counterparts. Flipkart has opened 11 new fulfilment centers and created over 100,000 temporary jobs across 40 regions to ramp up its same-day and next-day deliveries.
With the likes of Flipkart’s Big Billion Days sale and Amazon’s Great Indian Festival kicking off late September, both platforms immersive shopping experiences along with steal deals. Flipkart is betting on AR and 3D try-ons, enhancing its fashion and home décor categories. Meanwhile, Amazon is focusing on penetrating deeper into non-metro markets to expand its reach.
The Convenience Trap: How E-Commerce Fuels Impulse Buying and Hoarding
While e-commerce has undoubtedly made festive shopping easier and more convenient, it has also led to some unintended consequences. The sheer accessibility of goods, combined with deep discounts and flash sales, often prompts consumers to buy items they might not have purchased otherwise. According to a PwC report, 44% of Indian consumers admit to making impulse purchases during sales, a behavior that has only intensified with the rise of e-commerce. During the festive season, this is even more pronounced as platforms promote limited time offers, encouraging shoppers to stock up or hoard items they don’t necessarily need. Whether it's buying an extra gadget just because of a deal or hoarding sweets for fear of missing out, the convenience of e-commerce can sometimes lead to overconsumption, a trend worth noting as we embrace the digital shopping age.
While quick commerce is reshaping consumer expectations around speed and convenience, traditional e-commerce platforms are upping the ante with immersive shopping experiences and deeper market penetration. Whether you’re in need of modaks, an iPhone 16, or last-minute Diwali décor, India’s e-commerce platforms have you covered, with speedy deliveries and jaw-dropping deals making this festive season one for the record books.
Ready to tap into the pulse of India's festive shopping frenzy? Don't miss out on the latest insights and strategies driving the explosive growth of quick commerce this season. Stay ahead of the competition with Market Xcel's in-depth market analysis and discover how your brand can deliver joy at lightning speed. Contact us today to unlock the full potential of festive e-commerce.