Festival sales: Quick-commerce leads with over 85% order volume growth

Unicommerce analysis shows quick commerce outpacing e-commerce in festive week order volumes, led by FMCG, beauty, wellness, electronics and strong Tier-II, Tier-III city demand

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Quick commerce (qcom) order volumes saw an over 85 per cent year-on-year (YoY) increase during the first week of the festival season sale, while e-commerce orders saw a 21 per cent rise, according to an analysis by e-commerce enablement software-as-a-service platform Unicommerce.

 

The trend highlights the growing consumer preference for faster deliveries, positioning qcom as a key growth driver in this year’s festive sales. The comparison accounts for the corresponding six-day period last year (starting September 26, 2024), with this year’s sale period, which began on different dates across platforms. The analysis is based on over 40 million transactions processed by Unicommerce’s flagship platform Uniware during the first festive sale week in both years.

 

The key categories that drove overall growth during this period included fast-moving consumer goods (FMCG), led by healthy foods, followed by beauty and wellness, health and pharma, which saw a strong demand for nutraceuticals and supplements, and electronics, fuelled by increased sales of home appliances and home decor products.

 

With integrations across sales channels, brand websites also recorded a 31 per cent increase in volumes, driven by the beauty and wellness segment, including makeup, personal care, and hygiene products. The fashion category, primarily led by apparel and jewellery, also recorded strong growth, the company said in a statement.

 

In terms of geographies, Tier-II and Tier-III cities continued to drive a significant share of order volumes, collectively accounting for around 58 per cent of the total festive transactions during the first festive week. As per the analysis, while metros and Tier-I cities recorded a 22 per cent increase in order volumes, Tier-II and Tier-III cities together registered a 20 per cent growth, compared to the corresponding period last year.

 

The report added that the steady increase in order volumes from Tier-II and Tier-III cities highlights the growing significance of these towns in driving festive season demand.

 

Tarun Joshi, founder and CEO of gifting platform IGP, said, “This year, qcom is expected to contribute 15-20 per cent of festival sales, up from a negligible share earlier, while e-commerce continues to drive 80 per cent of sales through premium hampers and curated gifts. Overall, we expect festive sales to grow by around 25-30 per cent Y-o-Y, driven by a mix of early planners and last-minute celebrators.”

 

Joshi added that gifting during the festive season has grown at a 30 per cent compound annual growth rate over the last two to three years and now accounts for close to two-thirds of our overall sales.

 

“The orders from Tier-II and Tier-III cities have grown more than threefold, while metros like Delhi-NCR, Mumbai, and Bangalore continue to lead in volume,” he added.

 

Hyperlocal e-commerce platform LoveLocal is also recording a rise in sales. Akanksha Hazari, founder and CEO of the platform, said, “We anticipate a remarkable 14 times increase in sales gross merchandise value (GMV) for the festive season as compared to last year, which reflects our customers' growing preference and trust. Families usually gather to celebrate during this time, and we're seeing that reflected in consumer buying behaviour as well. Apples, bananas, and papayas remain the most popular and often purchased items in the fruits and vegetables category. In the meat and fish category, on the other hand, chicken and eggs are gaining popularity and solidifying their position as our customers' go-to holiday foods.”