Shiprocket Projects $12 Bn Ecommerce Opportunity For MSMEs In Festive Season
Festive ecommerce growth in India has been fueled by the continued rise of digital penetration in tier-2 and tier-3 cities says the report
Shiprocket, a unicorn and ecommerce enablement platform, has released data insights projecting the Indian festive ecommerce market to reach USD 12 billion during the key months from October to December 2024. This represents a substantial 23 per cent increase compared to USD 9.7 billion in 2023. The growth is largely driven by consumer demand in categories like fashion, electronics, beauty, and personal care, along with a surge in quick commerce, which alone is expected to contribute USD 1 billion in gross market value (GMV).
Festive ecommerce growth in India has been fueled by the continued rise of digital penetration in tier-2 and tier-3 cities, improved internet accessibility, rising disposable incomes, and enhanced digital literacy. Beyond tier-1 cities, approximately 60 per cent of online festive orders are expected to originate from non-metro areas, said the company.
Furthermore, AI-driven recommendations and social media influencers continue to shape consumer behaviour, particularly in the fashion and beauty categories, with 84 per cent of consumers making purchases based on promotions or influencer suggestions. Additionally, insights reveal that around 55 per cent of festive orders come from first-time shoppers. In contrast, weekend shoppers contribute significantly, accounting for approximately 27 per cent of total festival sales, with Sunday accounting for around 13 per cent and Saturday making up about 14 per cent.
India’s ecommerce export market is presently valued at approximately USD 3-4 billion but is expected to surge to USD 200-300 billion by 2030, as micro, small and medium enterprises (MSMEs) continue to tap into global markets and government initiatives, like Directorate General of Foreign Trade (DGFT), further enhance India’s export capabilities. Shiprocket’s data revealed an increasing global appetite for Indian goods during the festive season, particularly through platforms such as Amazon Global and Flipkart’s Global Stores.
Ecommerce exports have seen consistent year-on-year growth, with cross-border sales growing by 15-20 per cent in 2023. MSMEs are seizing the opportunity to expand globally, with popular export categories including handicrafts, home décor, and fashion. Shiprocket claimed that it currently facilitates approximately USD 100 million in global ecommerce GMV, with more than 3,000 merchants actively engaged in exports.
"As we enter the 2024 festive season, the momentum for ecommerce continues to build across Bharat, particularly in tier-2 and tier-3 cities. At Shiprocket, we are proud to play a pivotal role in enabling merchants to meet this growing demand, not only within India but on a global scale. With the rise of quick commerce and the increasing global appetite for Indian products, we are excited to support MSMEs in tapping into this tremendous USD 12 billion opportunity. Our goal is to continue innovating and providing the tools necessary for businesses to scale and succeed both locally and internationally," said Saahil Goel, Managing Director, Chief Executive Officer, Shiprocket.
