NEW DELHI: Festive season shopping has surged this year, with demand up 23–25% across metros and emerging markets, driven by GST-led price cuts that reduced costs in big-ticket categories like electronics.
The latest GST reforms, effective September 22—the first day of Navratri—lowered tax rates in high-demand segments such as large-screen TVs, mid-range fashion, and furniture. This not only cut retail prices but also encouraged aspirational buying, particularly in tier-2 and tier-3 cities, boosting discretionary spending.
According to Redseer, reducing GST on large TVs from 28% to 18% lowered retail prices by 6–8%, lifting sales of premium models. Fashion items below ₹2,500 now attract only 5% GST, while furniture, also at 5%, is seeing stronger conversions from browsing to purchase.
Sales in the first two days rose 23–25% year-on-year, a four-to-fivefold jump over last year’s muted start. Premium smartphones, TVs, and other electronics led the growth, with loyalty program members driving record purchases. Strong demand even caused app slowdowns and crashes, Redseer noted.
E-commerce platforms reported record traction:
Amazon logged over 38 crore visits in the first two days—its biggest-ever festive start—with 70% traffic from outside the top nine metros. SMBs thrived, with 16,000 tripling daily sales. Its #GSTBachatUtsav storefront passed on GST benefits worth crores across categories.
Flipkart saw a 21% rise in user visits, with mobiles, TVs, and refrigerators up 26% YoY. Growth was strong in non-metros like Indore, Surat, and Varanasi.
Snapdeal reported fashion sales doubling, seasonal apparel growing nearly fivefold, and festive serveware jumping 350%. CEO Achint Setia credited GST cuts for boosting demand in apparel and footwear.
For the first time in years, India’s festive e-commerce season is being shaped not just by discounts but also by policy reforms, rising consumer confidence, and deeper market penetration.
