Sales of Premium Products on Amazon India Increases Significantly during Festival Season

Nitin Konde, Varun Bhardwaj

Nov 5, 2024 — 3 min read

Amazon India Surge in Premium Product Sales During Festive Season

According to a senior corporate official on 2 November 2024, the Diwali season sale during the Amazon Great Indian Festival (AGIF) 2024, which started on September 27, was driven by demand for high-end products across a variety of categories, including televisions, smartphones, and major appliances.

During the Amazon Great Indian Festival (AGIF) 2024, the business saw a ten-fold increase in sales of Apple iPads and a five-fold increase in sales of Samsung tablets, according to Amazon India Vice President Saurabh Srivastava, who spoke to a media agency.

Premiumization was one obvious trend that existed. Upon closer inspection, a distinct tendency of premiumization is seen in everything from televisions to fashion and beauty items, gaming laptops, and kitchen and household appliances. Consumers are favouring more high-end goods. Srivastava reiterated that this is not exclusive to major cities.

Sale of Television Sets Dominated AGIF 2024

About 30% of the segment's total unit sales were large-screen TVs, and demand for these devices increased tenfold year over year, with Samsung, Xiaomi, and Sony emerging as the most popular TV manufacturers.

Apple and Samsung are high-end tablet manufacturers. Samsung tablets increased five times year over year (YoY), whereas Apple tablets increased ten times. Large appliances include washing machines, refrigerators, and air conditioners, of course, but high-end models like front-loading washers, side-by-side refrigerators, and air conditioners larger than 1.5 tonnes increased 30% year over year, according to Srivastava. Watches, perfumes, handbags, Korean beauty, jewellery, luggage, and other luxury categories saw a 400% increase in the fashion and beauty sector.

Comparison of AGIF 2024 with AGIF 2023

The Amazon Great Indian Festival 2024 received 140 crore customer visits, the biggest ever. According to Srivastava, more than 85% of clients came from non-metropolitan cities. Amazon India reported a 50% year-on-year increase in B2B clients making their first purchase from Amazon Business.

AGIF 2024 has set new milestones for seller success, with more than 70% more vendors achieving a crore in sales than the previous year. The online marketplace expanded its rapid delivery capabilities, delivering over 3 crore products to Prime members across India on the same or next day, a 26% rise from the previous year.

Amazon Raises Content Creator Commission During the Festive Sale

Earlier, Amazon in order to further increase it awareness among the Indian masses, it had increased its normal commission earning rates for select categories within its network of over 50,000 influencers ahead of the festive sale.

According to its site, for active creators who collaborate with Amazon, the updated commission structure offers influencers a significant rise ranging from 1.5x to 2x across a wide range of product categories, including fashion, beauty, and personal care products.

At that point, Director of shopping initiatives for India and emerging markets, Zahid Khan stated that Amazon is giving creators the tools and incentives they need to succeed during the festive season and beyond by drastically raising commission rates across important categories, the company is providing additional incentives through various programs to further back these creators.