2025 Festive E-Commerce Trends: Smaller Towns Account for 52-55% Festive Orders

Today, smaller towns consistently account for more than half of festive orders (52–55%), underscoring how Bharat not just the metros are now the true growth engine for festive e-commerce.

India’s festive season has long been the high point for e-commerce, and over the last three years the landscape has transformed dramatically. From the length of sale windows to the dominance of Bharat’s smaller towns, consumer behaviour is undergoing structural shifts, according to Unicommerce’s analysis of 210 million+ festive transactions processed via its Uniware platform between 2022 and 2024.

From Weeklong Blitz to Monthlong Shopping Carnival

The festive sales period has steadily expanded, morphing from just over a week in 2022 into a month-long, multi-wave cycle by 2024. What once revolved around Navratri now stretches across Dussehra, Karwa Chauth, Dhanteras, Diwali, and Bhai Dooj, effectively turning festive e-commerce into an ongoing celebration rather than a single event.

Bharat Takes the Driver’s Seat

Metros once powered festive e-commerce growth, but the momentum has shifted. In 2022 and 2023, metros and Tier-I cities grew 56% and 53% respectively, outpacing smaller towns. But by 2024, growth in metros had nearly flatlined at 2%, while Tier-II and Tier-III towns clocked 15% growth.

Today, smaller towns consistently account for more than half of festive orders (52–55%), underscoring how Bharat not just the metros are now the true growth engine for festive e-commerce.

Shifting Baskets: From Big-Ticket to Lifestyle Buys

The festive cart is no longer dominated only by electronics and home appliances. While fashion & accessories and beauty & personal care have remained the largest contributors across the three years, FMCG, particularly food & beverages has led volume growth.

The category mix itself is diversifying. In 2023, eyewear and wellness took centre stage, and by 2024, health, pharma, and travel accessories joined the growth charts. This evolution signals a pivot from big-ticket purchases to lifestyle, wellness, and everyday consumption.

Regional preferences are also shaping demand: Karnataka and Maharashtra drive apparel sales, while beauty categories thrive in Rajasthan, Himachal Pradesh, and Gujarat. Interestingly, smaller towns such as Rohtak, Jodhpur, Raipur, and Kamrup are emerging hubs for home décor and furniture, pointing to lifestyle upgrades beyond metros.

India Goes Prepaid

Digital payments are now central to festive e-commerce. In metros, prepaid orders consistently accounted for 77–80% of festive sales between 2022 and 2024. Smaller towns are catching up too, with prepaid penetration rising from 61% in 2022 to 63% in 2023, before stabilising at 60% in 2024. The narrowing gap between metros and Bharat highlights a rising comfort with prepaid options even outside urban centres.

What to Expect in 2025

Early signals suggest festive 2025 will outpace previous years. According to the Unicommerce analysis, two factors could play a decisive role:

  • GST Cuts: Effective 22 September 2025, lower GST rates on FMCG, textiles, and electronics are expected to boost demand, especially among value-conscious buyers. Businesses will likely spotlight these products during the festive window.
  • Tech-Led Shopping: Quick commerce is emerging as the go-to for last-minute gifting and essentials, while AI is enabling sharper demand forecasting, personalised recommendations, and smarter inventory planning.

Together, these shifts point to a festive season that is not just bigger, but also faster, smarter, and more inclusive, cementing festive e-commerce as a barometer of India’s retail economy.

 

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