Indian E-commerce Sales Growth Stalls Amid Shift to Budget-Conscious Spending
Indian online festive sales have seen a decline in total transaction value as consumers scale back on high-ticket items due to economic uncertainty.
Despite high traffic volume on major platforms like Amazon and Flipkart, India’s festive retail season is witnessing a significant cooling in consumer spending. Data from market intelligence firm Datum Intelligence indicates a 7-10% year-on-year drop in online festive sales value, with card spending falling by up to 15%.
While retailers reported record-breaking concurrent users and order volumes, these metrics do not correlate with a growth in revenue. Consumers are increasingly focusing on lower-priced categories such as apparel, fashion, and beauty, while demand for big-ticket electronics and home appliances has softened. A LocalCircles survey corroborates this trend, projecting a 6% reduction in urban discretionary household spending for the year.
The decline follows a period of economic pressure, including rising costs and job market instability. Analysts suggest that the lack of tax-led triggers, which boosted figures in previous years, has further impacted the market. As a result, retailers are facing a shift in consumer behavior where browsing remains high but conversion to expensive purchases has become significantly more selective.