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Festive Sales Slowdown: Prices Surge, Demand Dips
19 Oct
Summary
- Online delivery dispatches are down 10-12% year-over-year.
- Product prices have increased by 30-40% in recent months.
- Consumers are delaying purchases or choosing cheaper alternatives.
Online sales during India's festive season have shown a sluggish start, with delivery dispatches lagging 10-12% behind the previous year in the initial ten days. This downturn is primarily linked to a substantial 30-40% price escalation in premium electronics, including smartphones, home appliances, and laptops, over the past few months. Higher costs are compelling consumers to postpone buying decisions or seek more affordable options. Early sales data indicated a flat opening for the festive period, with gross merchandise value falling short of last year's figures during the initial four days. Electronics and smartphones, which represent a significant portion of sales, are particularly affected by these price hikes, dampening overall sales volumes during a peak shopping period.
