Festive online sales off to fine 'premium' start

India's e-commerce sales kicked off strongly during the festive season, buoyed by a soaring affordability rate and premium product demand, despite inflationary pressures. Executives from FMCG, apparel, and electronics firms reported a 40% surge in online purchases over the first three days compared to the previous year. The trend extended to quick-commerce platforms, particularly for small electronic and household items, in addition to traditional consumer goods.

The Navratri festival served as a catalyst for the strong start, coinciding with the end of the Shradh period on Sunday night. In Kolkata, Haier India's CEO, Satish NS, noted a 30% year-on-year increase in sales during the initial three days, driven by consumers opting for higher-value products.

Parle Products' Chief Marketing Officer, Mayank Shah, reported a 45-50% jump in packaged food sales, driven by mid-sized and large pack sizes. Consumers are gravitating towards differentiated and healthier options, with quick-commerce transactions on the rise. Average bill values on these platforms have climbed 15-20% in urban areas, while smaller towns are witnessing first-time users.

In the electronics sector, premium sales have helped offset the impact of repeated price hikes. Super Plastronics, a TV manufacturer, saw a 10% increase in sales over the first two days, accelerating to 20% from Sunday midnight. The growth was attributed to a shift towards larger screen sizes (55 and 65 inches), despite a decline in smaller 32-inch models due to a GST reduction last year.

Smaller appliance maker Wonderchef also reported a 20% year-on-year sales increase in the first three days, led by premium products. However, cautious mass-market buyers, affected by global uncertainty and stock market weakness, lagged behind. Premium smartphones, priced above ₹45,000, bucked a 12% decline in overall mobile phone sales, marking the only segment to grow.

Research director Tarun Pathak from Counterpoint Research attributed this to a 35-40% price increase in smartphones, partly due to surging demand for memory chips used in AI data centers.