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GST rate cuts combined with early festive-season offers drove strong demand for consumer electronics, appliances and mobiles. First-week festive GMV surged, premiumisation accelerated, and sellers passed on savings—boosting categories like TVs, ACs, dishwashers, inverter batteries and premium TVs.
Festive season surge: GST reforms meet big-ticket demand
The latest festive season proved highly promising for consumer electronics and appliances as two powerful forces converged: a GST rate cut that reduced prices on many high-ticket items, and deep discounts from major ecommerce sales events. This combination triggered front-loaded buying by subscription shoppers and strong traction among mainstream consumers, leading to notable year-on-year growth across the sector.
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Key numbers at a glance
- Appliances GMV growth: 34% year-on-year
- Consumer electronics GMV growth: 41% year-on-year
- First-week festive GMV: ~Rs 6,000 crore, representing 51% of projected festive season sales and a 29% rise from last year
- Share of total festive GMV: Appliances, consumer electronics and mobiles comprised 64%
- Premium-product demand: ~26% year-on-year increase
- Premium TVs (QLED, Mini-LED): >23% year-on-year growth
- Inverter batteries: 2x jump in sales during the opening two days of the sale
What changed: GST rate cuts and timing
New GST reforms that took effect from September 22 shifted many consumer electronics and white goods from the 28% tax slab to the 18% slab. Items such as televisions, air conditioners and dishwashers became cheaper as a result, creating immediate price reductions just as ecommerce platforms kicked off their marquee festive sales.
Why ecommerce benefited
Ecommerce marketplaces offered early access to paid subscribers on September 22, enabling high-intensity shoppers to buy immediately and lock in combined savings from GST-driven price falls and sale discounts. This front-loading of demand contributed materially to the strong opening-week GMV numbers.
Category winners and consumer preferences
Several categories outperformed, driven by value-conscious buyers who also showed a preference for premium and energy-efficient options:
- Air conditioners and dishwashers: Double-digit year-on-year growth observed during the initial sale days
- Inverter batteries: Surged 2x as buyers reacted to lower prices and reliability concerns
- Premium refrigeration and laundry: Side-by-side refrigerators and advanced washing machines saw above-average demand
- Energy-efficient appliances: Split ACs, energy-efficient fans and air fryers became preferred picks
- Premium TVs: QLED and Mini-LED models gained strong traction, growing over 23% year-on-year
How sellers and marketplaces responded
Marketplaces and sellers publicly reported passing on GST benefits to customers through dedicated storefronts and targeted promotions. Sellers used the tax cut as a promotional lever, amplifying discount messaging to drive conversion during the busiest retail window of the year.
What this means for manufacturers, retailers and shoppers
- Manufacturers: Expect continued appetite for premium SKUs and energy-efficient models. Product roadmaps and inventory planning should prioritize high-margin premium offerings and after-sales support for larger ticket goods.
- Retailers & marketplaces: Early-bird promotions for subscription members can front-load demand and improve cash flows. Transparent communication about tax-driven savings fosters trust and conversion.
- Shoppers: The combination of GST rate cuts and festive discounts offers a rare chance to buy upgraded, energy-efficient appliances at lower effective prices—especially on high-ticket items that previously sat in the 28% tax slab.
Practical tips for buyers this festive season
- Compare final prices after factoring in the GST-reduced rate and marketplace discounts rather than only headline discounts.
- Look for energy-rating labels (star ratings) on ACs, refrigerators and washing machines to calculate long-term savings.
- Consider premium variants (QLED, Mini-LED TVs; inverter-equipped ACs; advanced washing machines) where the incremental performance and energy savings justify the higher upfront price.
- Check warranty, installation and after-sales service terms before buying high-ticket appliances online.
- If you’re a frequent shopper, paid early-access plans can yield meaningful savings during peak sales days.
Bottom line
The intersection of GST reforms and the festive sales calendar created a favorable environment for consumer electronics and appliances, driving strong GMV growth and accelerating premiumisation trends. For consumers, this translated to better value on large purchases; for the industry, it signaled a robust demand cycle for high-ticket, energy-efficient and premium products that could shape inventory and marketing strategies for the months ahead.
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