Festive Sales in India See 32-35% Surge in Online Retail Sales

Online retail sales in India surged 32-35% on the first two days of the festive season, driven by GST 2.0 and heavy discounting by Amazon and Flipkart. Smartphones, TVs, and appliances saw 30-40% growth in sales, while mattresses, beauty/personal care, and fashion products saw 25%, 19%, and 17% growth, respectively. Strong smartphone demand indicates a crucial indicator for the segment, which has otherwise seen sluggish sales.

Online retail sales in India surged 32-35% on the first two days of the festive season, driven by GST 2.0 and heavy discounting by Amazon and Flipkart. Smartphones, TVs, and appliances saw 30-40% growth in sales, while mattresses, beauty/personal care, and fashion products saw 25%, 19%, and 17% growth, respectively. Strong smartphone demand indicates a crucial indicator for the segment, which has otherwise seen sluggish sales.

Haier Appliances India, an appliance & consumer electronics maker, expects around 25 to 30 percent growth this festive season, helped by GST reduction on large screen TVs and room-air conditioners (RACs) Haier expects up to 30% growth in festive season post GST cut, to up India investments: NS Satish^[1]. The company is investing Rs 1,500 crore in its Greater Noida-based plant and scouting land for a new factory in South India to cater to domestic and export opportunities. The GST reduction on TV screens above 32-inch and RACs from 28% to 18% is expected to increase the localisation drive and 'make-in-India' project.

The festive season is expected to boost sales significantly. According to Haier's President NS Satish, the GST benefit will increase consumption, thereby increasing production and investment. The company plans new product launches and marketing campaigns to attract customers. Satish expects India to become one of the top three markets globally in the next 4-5 years with a sales revenue of USD 2 billion Haier expects up to 30% growth in festive season post GST cut, to up India investments: NS Satish^[1].

Flipkart, backed by Walmart, is also expanding its fintech arm, Super.money. The company has invested $300 million in Super.money, which is now the fifth-largest UPI app in India, handling nearly 275 million transactions Walmart-backed Flipkart to invest $300 million in fintech unit Super.money^[2]. Super.money is planning to launch a simplified stock-trading platform to tap into India’s growing pool of retail investors.

The strong demand for smartphones, TVs, and appliances during the festive season indicates a robust market for these products. The GST reduction and heavy discounting by e-commerce giants are likely to drive further growth in these sectors. The fintech expansion by Flipkart and other companies is also expected to contribute to the overall growth of the digital economy in India.