Mumbai : India’s festive season has always been a high point for e-commerce, with millions of shoppers turning to online platforms for festive season deals. Over the last three years (2022, 2023 & 2024), festive season sales have not only grown in size but also witnessed significant shifts in consumer behaviour, category preferences, and regional participation.
The following analysis is based on 210 mn+ festive season transactions processed via Unicommerce’s flagship platform, Uniware through these years.
The festive season sale window has expanded over the years – from just over a week in 2022 to a month-long shopping cycle today. What once began only with the Navratri days, now starts earlier and continues with multiple sale waves through Dussehra, Karwa Chauth, Dhanteras, Diwali, and Bhai Dooj, turning festive e-commerce into an ongoing celebration rather than a single event.
Rising role of Tier 2 & 3 cities
Alongside a longer duration, festive e-commerce has become broader in its reach.
In 2022, metros & tier-1 cities saw strong growth of 56%, compared to about 36% growth in tier-2 and tier-3 towns (combined) over the previous year’s festive sales. The pattern was similar in 2023, with metros & tier-1 cities growing at 53% and smaller towns together growing at around 30%. In 2024, the picture changed with growth in metros slowing to 2%, while tier-2 and tier-3 towns together grew by nearly 15%.
Tier-2 and tier-3 towns now account for more than half of festive orders. The share of festive season orders from Tier 2 & 3 towns (combined) has been 55.33%, 51.91% and 52.97% in 2022, 2023 and 2024 respectively.
This shows that while metros drove festive e-commerce growth in the early years, smaller towns are now becoming the main contributors, reflecting how online shopping is spreading more deeply across Bharat.
Evolving customer preferences
Festive shopping patterns in India have been evolving over the last three years.
While beauty & personal care (BPC) and fashion & accessories have been the two top contributors of festive orders over these years, FMCG has consistently led volume growth from 2022 through 2024 – with food & beverages leading the numbers. In 2022, electronics & home appliances and home decor drove festive baskets whereas 2023 saw a pivot towards eyewear & accessories and beauty & wellness products, pointing to lifestyle and personal care upgrades. By 2024, the momentum expanded further with health & pharma and travel accessories joining the growth charts, signaling how festive shopping has evolved from big-ticket buys to broader lifestyle and wellness-driven consumption.
Fashion and accessories have consistently dominated festive purchases, with Karnataka and Maharashtra being the top volume generating states, driven by cultural preferences for festive apparel. Beauty & personal care products have seen steady growth across both big and smaller cities in Karnataka, Rajasthan, Himachal Pradesh and Gujarat. Meanwhile, categories such as home decor and furniture are witnessing increasing traction from smaller towns including Rohtak, Jodhpur, Raipur, and Kamrup among many others, signaling lifestyle upgrades beyond the metros.
India Goes Prepaid for Festive Buys
Prepaid shopping has firmly established itself as a festive favourite. In tier-1 towns and metros, prepaid orders accounted for 77% in 2022, peaked at 80% in 2023, and stood strong at 77% in 2024 – reflecting higher trust in digital payments, smoother checkout experiences and the extra discounts often available via card offers etc.
The shift is equally visible in tier-2 and tier-3 cities, where prepaid transactions rose from 61% in 2022 to 63% in 2023, before settling at 60% in 2024. The trend underscores how prepaid preferences are no longer just an urban phenomenon but are steadily gaining ground in smaller towns as well, signaling a narrowing digital divide between metros and Bharat.
Looking Ahead: 2025 Sale Season
Building on the consumer response seen during pre-Rakshabandhan and Independence Day sales, festive 2025 is expected to see strong participation.
The recent GST changes, effective from 22nd September 2025, are likely to give festive e-commerce an added boost. Lower rates across FMCG products including daily essentials like grains, dairy items, hair oil, shampoo, etc., textiles including readymade apparel as well as electronic appliances among others, are expected to make prices more attractive for online shoppers during the festive season sale period. Businesses are likely to leverage this festive window to spotlight products that have moved to the lower tax slabs, a move likely to resonate strongly with value-conscious buyers.
Festive 2025 will also spotlight the role of q-comm and AI. Quick-commerce is reshaping habits with last-minute gifting, festive essentials, and impulse buys delivered in minutes. At the same time, AI is sharpening demand forecasts, optimising inventory, and curating personalised journeys. Together, they’re powering a festive season that’s faster, smarter, and sharply tuned to every shopper’s needs.
Leave a Reply