Analysts expect festive online sales to grow 30% after GST relief – The Economic Times

Ecommerce main Amazon India introduced the dates of its flagship Nice Indian Competition quickly after the Items and Providers Tax Council minimize charges on classes akin to footwear and attire (priced as much as Rs 2,500), purses, candies, namkeens, and home equipment together with televisions.

The month-long sale will begin on September 23, a day after the brand new GST charges are carried out. Analysts mentioned the timing of the tax revision, simply forward of the festive season, is more likely to drive demand.

“Ecommerce platforms are positively going to spur gross sales by means of the emotion of cheaper price and decrease value of their festive advertising and marketing campaigns,” mentioned Amar Choudhary, chief govt of market analysis agency 1Lattice.

“The ten-percentage-point reduction in GST on appliances will appeal to customers to purchase extra televisions, fridges, air conditioners and extra, which is able to drive total gross sales,” he mentioned.

Choudhary expects electronics and equipment gross sales to develop 50-60% year-on-year, and total festive gross sales to rise as much as 40%.

ET earlier reported that ecommerce marketplaces and on-line retailers are anticipated to ship a record Rs 1.2 lakh crore value of products this festive season, a 25% improve from 2024.

Datum Intelligence founder Satish Meena mentioned gross sales might surpass earlier forecasts. “The GST price cuts are aligned to our expectations, however platforms were worried about the timeline. Now with readability on implementation, festive gross sales will start after September 22, as most orders occur within the first week,” he mentioned.

Each Amazon India and Flipkart have welcomed the GST reforms. Walmart-owned Flipkart is but to announce dates for its annual Large Billion Days sale.

The festive season, which started with Ganesh Chaturthi final week, will run till Diwali in mid-October.

Manufacturers anticipate higher gross sales

Akash Sharma, cofounder of DSG Shopper Companions-backed snacking model Farmley, mentioned the reduction in GST from 12% to 5% will make snacks extra accessible, enabling high-quality merchandise to succeed in cabinets at cheaper price factors.

“Festive intervals are at all times pushed by worth and selection, and the GST minimize makes that proposition even stronger,” mentioned Siddharth Dungarwal, founding father of males’s clothes model Snitch. “Decrease efficient costs will encourage clients to buy extra freely, whether or not it’s for wedding ceremony put on, gifting, or on a regular basis style.” The D2C model expects 40-45% year-on-year progress this festive season.

Health merchandise model Boldfit can also be eyeing 40% progress in comparison with business-as-usual. “For sporting items and footwear this can be a landmark second. It makes sports activities much more accessible in our nation,” founder Pallav Bihani instructed ET.

“Doing this simply earlier than the festive season, the place shopping for sentiment is excessive, will lead to an enormous multiplier impact,” mentioned Pradeep Krishnakumar, founding father of style model Zouk, who additionally expects value advantages on uncooked supplies.

“We anticipate considerably increased traction in comparison with final yr, with the speed cuts serving as a robust progress catalyst,” mentioned Ganesh Sonawane, cofounder and chief govt at Frido, noting that the model noticed its gross merchandise worth reaching 3.5 occasions of business-as-usual in July throughout the pre-festive gross sales.

The festive season is the most important consumption window for India, accounting for 30-40% of annual gross sales in classes like attire and electronics. This yr it’s particularly essential for platforms and retailers, as gross sales have remained weak over the previous few quarters, with summer time gross sales additionally dampened by early monsoons and floods throughout a number of states.