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E-commerce platforms and logistics firms in India are bracing for a major surge in festive season demand, spurred by recent GST rate cuts. Companies such as Delhivery and DTDC are offering faster deliveries, while Flipkart and Amazon have expanded infrastructure and ramped up hiring to manage the rush, as per a TOI report.From all-night deliveries and increased staff to AI-driven inventory planning and additional storage facilities, online platforms and logistics companies are leaving no stone unturned to deliver everything from the latest smartphone to a pair of jeans in shrinking timeframes.The festive season has traditionally been associated with heightened consumer demand, but this year, purchases deferred to benefit from lower GST rates, effective September 22, the first day of Navratri, have made shopping lists even bigger.Quick commerce takes the spotlightLogistics firms like Delhivery and DTDC are fulfilling deliveries in as little as 30 minutes to a few hours, or on the same day depending on location. “This year, we are witnessing stronger demand across categories like electronics, fashion, lifestyle and gifting coupled with rising expectations of faster deliveries. We also expect demand tailwinds owing to additional consumer spending expected from the GST benefits,” Abhishek Chakraborty, CEO at DTDC Express, told TOI.Households typically splurge during festivities, and premiumisation has been a recurring trend. However, with GST cuts translating into higher savings for consumers, the industry expects a boost across categories, even those not directly impacted by the tax reduction.Live Events“Even though smartphones didn’t get a direct GST cut and remain in the 18% slab, savings on other tech products and a lift in consumer sentiment are giving buyers more room to spend and confidence to upgrade. Early insights indicate a strong start for e-commerce platforms,” said Shubham Singh of Counterpoint Research.Although online platforms often outperform offline stores during festive sales—particularly in categories like large appliances where brands push newer models online—physical retail is also expected to see increased footfall over the weekend, according to Satish Meena, adviser at market research firm Datum Intelligence.E-tailers scale operations for speed and demandFlipkart’s quick commerce service, Minutes, is running deliveries all day and night during its festive sale, with plans to make it a permanent offering if demand continues on regular days. “Overall, Flipkart is seeing a double-digit surge in demand,” said Pratik Shetty, VP of Growth and Marketing.On Amazon, products such as air conditioners and dishwashers, which have benefited from GST cuts, are reporting double-digit year-on-year growth, said Amazon India VP Saurabh Srivastava. Both Flipkart and Amazon have increased staffing and expanded infrastructure to meet heightened demand.“We are seeing strong growth in e-commerce and retail, driven by GST reforms, festive shopping, mega discount days and gifting, with demand from tier-2 and -3 towns outpacing metros,” said Dipanjan Banerjee, Chief Commercial Officer at Blue Dart.Myntra has also created additional warehouse and last-mile employment to cater to demand for its quick commerce service MNow, which delivers fashion and beauty products in as little as 30 minutes.“We have already seen a 20% growth in demand over the last two days compared to the same period last week,” said Seshu Tirumala, Chief Buying and Merchandising Officer at BigBasket.GST reforms boost consumption and festive spendingBy reducing costs for essentials and festive purchases, GST reforms are fueling consumption across sectors, said Devendra Meel, Chief Business Officer at Zepto, which expects consumer momentum to accelerate further.Godrej Enterprises’ appliance business is targeting a 40% growth in festive sales over last year. Fashion brand Snitch anticipates premium products to grow at nearly twice the rate of mass offerings online, driven by younger consumers upgrading festive wardrobes and gifting choices, said founder Siddharth Dungarwal. In FMCG, larger packs are expected to see increased demand as consumers leverage higher savings, said Angshu Mallick, MD & CEO at AWL Agri Business.With inputs from TOIAdd as a Reliable and Trusted News Source Add Now!
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