Festive season triggers huge rise in online shopping - ASSOCHAM

Festive season triggers huge 
rise in online shopping;

 Online shopping up by 350%

India to celebrate ‘first online Diwali’ 

this year & may cross Rs. 10,000 cr.


Mumbai malls may see 42% drop in 

footfalls this festival season: ASSOCHAM

Online shopping may increase by 350% during Diwali as against the jump of 200% in August-September as a result shopping malls have started feeling jittery as the footfalls in Mumbai malls is likely to go down by 42%, reveals the ASSOCHAM latest survey.

During Diwali, Online shopping estimated to cross Rs. 10,000 crore. The online retailing to see the biggest flip ever in the history, going forward this trend will not only continue but it will grow by leaps and bounds. “At present the market is estimated at Rs. 12,000 crore and could cross Rs. 1,00,000 cr. a year in India over the next three to four years”, reveals the ASSOCHAM paper.

As per the ASSOCHAM recent survey on “Indian Online Retail Sales Surge in Festive Season” reveals that there is more than a fivefold increase in revenue generated through e-commerce as compared to last year with all branded apparel, accessories, jewellery, gifts, footwear are available at a cheaper rates and delivered at the doorstep within two to three days, adds the ASSOCHAM.

While releasing the ASSOCHAM paper its Secretary General Mr. D S Rawat said, “whole new audience is connected 24x7 through their smart phones, tablets and other mobile devices which is leading to a gradual evolution of e-commerce into mobile commerce”. 

ASSOCHAM recent findings found out that e-commerce sales in August and September grew by 200% from the same months in 2013 (120%), with mobile sales booming 100%. The report further said, consumers are turning to the internet savvy because of the fast and simple payment and delivery service. Online shopping is estimated to be up by 350% during the festive season than visiting bricks and mortar stores, adds its report.

“This festive season, shopping on ground has taken a back seat. Apart from convenience, rising fuel price, security reasons, online discounts and availability with abundance of choices are keeping consumers indoors”, said Rawat.

As per the ASSOCHAM estimates, Delhi-NCR has recorded the highest decline in footfalls at city malls. Shopping spirit in malls is found to be lowest among residents of Delhi-NCR (55%), followed by Ahmedabad (48.2%), Chennai (46%), Mumbai (42%) and Hyderabad (39%). According to estimates, roughly 250-300 malls came up in the country in the last two years but 80-85% of the spaces in these malls still lie vacant. The online shopping has proved especially harsh for shopping malls, adds the report.


The survey conducted in 10 cities-Delhi-NCR, Mumbai, Ahmedabad, Chennai, Kolkata, Hyderabad, Chennai, Bangalore, Chandigarh and Dehradun has revealed that online shopping industry in India is fast catching on, not just in the larger metros but also in the smaller cities.

According to the survey, “more and more choices online, about 55% of both men and 45% women using their smartphones, tablets, laptops and desktops to purchase products online”, points out the paper. “At least five out of two orders are through mobile phones”, reveals the paper.

Majority of retailers are calling the season the ‘first online Diwali’ as more consumers choose to browse and buy from mobile devices and tablets. With services like click and collect growing in popularity, retailers are adding to the options available, enabling their customers to shop online with the convenience of collecting in store. 

As per the ASSOCHAM report, the online shopping pattern has been changing in metros and tier-1 or tier-2 cities, where the broadband internet connectivity has already penetrated.  The most popular among the e-commerce websites are Snapdeal, Myntra, Flipkart, Amazon etc have been doling out massive price cuts or discounts on purchase of popular brands of apparels, footwear, electronic goods, coinciding with the upcoming festive season.

As per the ASSOCHAM recent study, “Indian e-commerce industry is expected to spend an additional 500 to 1,000 million USD in the same period on Infrastructure, Logistics and Warehousing, leading to a cumulative spend of 950 to 1900 million USD till 2017-2020”. The good grassroots level of logistics and delivery and distribution network in Tier-II & III cities is also aiding this trend.

“Impulsive buying and those not having time are definitely attracted and boosted the sale of online shopping”, said Its Secretary General. “Online retailers are reporting a surge in sales during the annual festive shopping spree as consumer preference for shopping online outpaces the physical malls, adds Mr. Rawat.

More metropolitans are opting to do their shopping online, especially during festive seasons, to avoid the usual hassle of traffic and queues at shopping malls. This year, they are expecting sales of clothing, bags and accessories, shoes, home decorations, cookies, slimming and beauty products online.

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