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Festive Sales Miss Mark: Mobile Slump Hits E-commerce
12 Nov
Summary
- Festive sales reached ₹1.40 lakh crore, a 17% increase from last year.
- Mobile phone sales declined significantly, impacting overall growth.
- Online sales were below the expected ₹1.50-1.55 lakh crore target.
Ecommerce and online retailers generated ₹1.40 lakh crore in gross merchandise value (GMV) during the recent festive period, marking a 17% increase from the previous year. However, this figure fell below the projected ₹1.50-1.55 lakh crore, primarily due to an unexpected slump in mobile phone sales. The festive season, which began on October 8 and concluded around Diwali on November 8, saw initial sales in the first week down by 17% year-on-year.
Market research firm Datum Intelligence noted a shift in consumer purchasing habits, with online shopping becoming more distributed across various platforms and segments. While electronics, especially mobile phones, typically dominate festive sales, their contribution decreased significantly. Mobile phones accounted for 25% of festive sales, down from 38% in 2024 and 35% in 2025. This muted demand for big-ticket items like phones and electronics was attributed to increased prices driven by raw material costs and economic caution among consumers.
Despite the overall trend, major platforms reported mixed results. Amazon India noted strong momentum in premium mobile phones and laptops, with premium Android smartphones seeing 50% year-on-year growth. Flipkart observed approximately 20-22% year-on-year growth in orders, units, and buyers during its sale event. Lifestyle products followed mobile phones in sales share, with other categories making up the remainder of the GMV.
