Festive E‑Commerce Slumps as Gadget Prices Surge

When the curtain rose on India’s festive online shopping extravaganza this year, the numbers weren’t as glittery as we’d hoped. Between October 7 and 10, the gross merchandise value (GMV) of e‑commerce sales landed somewhere between ₹29,800 crore and ₹30,900 crore – a clear dip from the ₹33,200 crore logged over the same period last year. Roughly a 7‑10 % drop, according to the market‑watchers at Datum Intelligence.

What’s behind the slowdown? A familiar duo – smartphones and laptops – now carry heftier price tags. Memory chips and other components have become pricier, and that cost is being passed straight onto consumers. For many shoppers, especially those eyeing a device upgrade, the math simply doesn’t add up during a time when wallets are already stretched.

Adding to the pinch was the missing GST rebate that usually rolls out in late September. Last year, a cut in the goods‑and‑services tax arrived just before the big sales, acting like a modest boost for big‑ticket purchases. This year, that incentive never materialised, leaving a gap that the higher gadget prices couldn’t fill.

Even with the dip in overall value, the sheer volume of orders stayed robust. RedSeer Strategy Consultants estimated that on October 8 and 9 alone, online platforms moved about $2.5 billion (≈₹24,000 crore) worth of goods, handling 8‑9 crore orders from 60‑65 million shoppers. In other words, people were still clicking ‘add to cart’, just perhaps opting for cheaper items.

Fashion, on the other hand, was the bright spot. RedSeer noted a 22‑25 % year‑on‑year jump in fashion GMV during the first two days, accounting for 15‑18 % of total sales. Smaller towns especially lit up the dashboards, with shoppers hunting for affordable festive wear.

Looking at the gadget slice, Datum Intelligence predicts smartphones will now make up about 30 % of festive GMV, down from 35 % in 2025. Mobile sales growth is projected to slow to a modest 6 % versus the 26 % surge seen last year. The narrative is clear: higher prices are nudging consumers to either postpone upgrades or spread their spend across lower‑cost categories.

Analysts like Satish Meena of Datum Intelligence and Nikhil Dalal of RedSeer stress that the coming days will be crucial. If fashion, beauty, home appliances and other non‑electronics categories can keep the momentum, online retailers might still claw back some of the lost value before the festive window closes.

So, while the headline number looks a touch grim, the story on the ground is more nuanced – a bustling marketplace where shoppers are simply being a little more selective about what they splurge on.