Ecommerce Brands Preparing for the 2024 Holiday

A Strategic Playbook for D2C in India

By August, the most prepared brands are already biting their nails, planning for the holiday shopping season.

D2C ecommerce brands in India find themselves on the edge of a cliff - and very few are equipped with a parachute 🤞

Holidays - where every click, every abandoned cart, and every delayed shipment could mean the difference between a record-breaking quarter and a missed opportunity. 

So, what makes or breaks the Holiday Season?

1. Anticipating Consumers’ Online Holiday Shopping Behaviour: Decoding the Digital Crystal Ball

83% of Indian consumers started their holiday shopping before October, and a staggering 68% completed their purchases on mobile devices.

Indians are not just shopping online; they’re planning their festive spending as meticulously as a Diwali feast. 

Keep a list of Holidays that suit your brand, its products, and the customers - and note pre holiday needs & post holiday needs specific to your brand.

2. How Will Holiday Sales Be This Year Compared to Last Year?

2023 was a firework display of consumer spending. 

We saw a 17% rise in ecommerce sales compared to 2022. This year, the stakes are even higher. Industry forecasts predict a 13-15% growth in 2024, driven by the increasing penetration of digital payments and a growing middle class in Tier-II and Tier-III cities.

Example: Take the case of Nykaa during the 2023 festive season. The beauty giant reported a 28% year-on-year increase in sales during Diwali, largely driven by its aggressive marketing campaigns and exclusive product launches tailored for the Indian market.

But let’s not forget that with great sales come great responsibilities—like managing returns, delivery hiccups, and, of course, the endless customer complaints.

3. What Obstacles Do Online Retailers Expect During the 2024 Holiday Shopping Season?

Here’s where things get tricky. The road to holiday success is paved with challenges—some predictable, others not so much. In 2023, 28% of Indian ecommerce brands reported severe supply chain disruptions due to global shipping delays and raw material shortages.

Brands like Flipkart and Amazon reported a 20% increase in delivery delays during the 2023 season due to overwhelmed logistics networks.

Solution: In 2023, BigBasket mitigated delivery challenges by collaborating with multiple delivery partners, reducing delays by 15% compared to 2022. 

Meaning? Do a carrier partner analysis to see who suits best for your product and the location you target.

It is ideal to have multiple partners for different locations and product types.

4. Contingency is Key for Supply Chain Management: The Parachute You Never Want to Use

Because nothing screams holiday spirit like a “Sorry, out of stock” message at checkout.

Supply Chain Disruptions: 70% of Indian retailers expected supply chain issues to impact their 2024 holiday sales. 

What to Do:

• Diversify Your Suppliers: Don’t put all your eggs in one basket. Diversifying your supply chain can reduce the risk of disruptions by 40%
• Automate and Predict: Demand forecasting based on historical sales data helped brands like Tata CliQ reduce overstock by 25%.

5. Precautions for the 2024 Holiday Shopping Season, Based on Historical Data: The Crystal Ball is Real

History has a funny way of repeating itself, especially if you ignore its lessons. The 2023 holiday season showed that brands that prepared early and used data-driven decision-making saw a 22% reduction in last-minute logistical nightmares.

Example: Amazon India’s ‘Great Indian Festival’ 2023 is a case in point. By leveraging historical data to predict peak demand periods, Amazon improved its delivery time by 15% and reduced cart abandonment rates by 10%.

Key Precautions:

• Start Early: Begin your planning by mid-year. Brands that started early in 2023 had 20% fewer fulfilment issues.
• Use Data Analytics: Incorporate data analytics to forecast demand and manage inventory. Brands that did this saw a 25% decrease in out-of-stock items during peak sales.

6. Location-Based Data and Delivery Partner Performance: The Hidden Goldmine

Understanding where your customers are shopping from can provide a competitive edge.

48% of holiday shoppers in India came from Tier-II and Tier-III cities. Location-based data can help tailor marketing efforts and optimise delivery routes.

Delivery Data Insights:

• Delivery Time: Brands that used location-based delivery strategies reduced delivery times by 18% during peak periods.
• Partner Performance: Ecom Express, one of India’s leading logistics companies, reported a 95% on-time delivery rate during the 2023 holiday season when partnering with brands that provided accurate, location-based delivery data.

7. WhatsApp Campaign Targeting: The Direct Line to Your Customers

WhatsApp marketing has been a game-changer since 2022, with 70% of Indian ecommerce brands reporting higher engagement rates. Its versatility allows for direct, personalised communication, driving a 30% increase in conversion rates compared to email campaigns. 

Metaphor in Action: Think of WhatsApp as the friendly neighbourhood shopkeeper who knows exactly what you want, before you even ask. Use it wisely, and it can be your secret weapon this holiday season.

Example: Nykaa’s Diwali 2023 campaign on WhatsApp led to a 35% increase in sales by leveraging personalised messages and time-sensitive offers.

8. Competing with the Market: Standing Out in a Sea of Discounts

When everyone’s offering a discount, how do you stand out? The answer lies in personalisation and brand loyalty. In 2023, Myntra’s personalised shopping experiences led to a 35% increase in repeat customers during the festive season.

Imagine your brand as a beacon in a crowded marketplace - Personalisation is the lighthouse that guides loyal customers back to you, time and again.

Stats:

• Loyalty Programs: Brands that offered loyalty programs saw a 20% higher average order value (AOV) in 2023.
• Exclusive Offers: Nykaa’s exclusive holiday collections contributed to a 30% boost in sales during Diwali 2023.

Strategies to Consider:

• Dynamic Pricing: Adjust prices based on customer behaviour, demand, and competitor pricing.
• Customised Offers: Use customer data to create offers tailored to individual preferences and past purchases.

9. What Do You Lack and What Can You Rectify Before the Holiday Season? The Mirror Never Lies

Before you dive into the deep end, take a good, hard look in the mirror. What’s missing? What could be better? 

60% of Indian ecommerce brands identified weak customer service as their biggest flaw, leading to higher return rates and lower customer satisfaction.

Common Gaps:

• Website Performance: Nearly 45% of Indian brands reported slow loading times during peak periods in 2023, which led to higher bounce rates.
• Customer Service: Delayed responses and unhelpful customer support were cited as major pain points by 55% of consumers during the 2023 holiday season.
• Inventory Management: 30% of brands faced stock outs during critical sales periods due to inaccurate forecasting.

10. Automating Return Management: Because Returns Shouldn’t Be a Nightmare

Returns are an inevitable part of ecommerce, but they don’t have to be a logistical headache. In 2023, brands that streamlined their return processes saw a 40% reduction in return processing time and a 20% decrease in related costs.

Example: Myntra’s efficient return management system allowed it to process returns in under 24 hours, reducing customer complaints by >15%.

What to Implement:

• User-Friendly Return Portals: Integrate systems that allow customers to initiate returns easily and track the process in real-time.
• Clear Return Policies: Communicate transparent and easy-to-understand return policies to reduce friction and increase customer trust.

11. Automating NPS and Feedback Collection: Learning from the Present to Improve the Future

Collecting customer feedback is crucial, but real-time analysis is where the magic happens. In 2023, brands that automated their NPS (Net Promoter Score) collection and feedback processes saw a 25% improvement in customer satisfaction scores.

Most of our brands that implemented a robust feedback collection system during the 2023 holiday season saw a 20% increase in customer loyalty by quickly addressing pain points.

Benefits for 2024, 2025, 2026, 2027, and so on:

• Real-Time Feedback Analysis: Automated systems allow for immediate adjustments to marketing and service strategies.
• Long-Term Planning: Data collected during the 2023 season provided insights that helped shape 2024 holiday preparations, reducing customer churn by 12%.

12. The Future is Omnichannel: Seamlessly Integrating All Customer Touchpoints

As ecommerce evolves, so must your approach. An omnichannel strategy ensures that whether your customer is shopping on their phone, desktop, or in-store, their experience is consistent and engaging.

Reliance Retail's omnichannel strategy since 2021, has led to a 22% increase in customer retention by providing a seamless shopping experience across platforms.

What to Implement:

• Unified Customer Profiles: Integrate data across channels to maintain consistent customer interactions.
• Consistent Branding: Ensure that your brand’s voice, message, and visuals are uniform across all platforms.

13. Price Sensitivity Analysis: Avoiding the Discount Black Hole

Discounts can be a double-edged sword during the holiday season. Pricing strategies must strike a balance between attracting customers and protecting profit margins.

Indian D2C brands that offered deep discounts during the 2023 festive season saw a 17% drop in average order value (AOV) despite a 32% increase in transaction volume.

Instead of flat discounts, brands need to leverage price sensitivity analysis, evaluating consumer behaviour at various price points to optimise profits.

By analysing past trends and consumer elasticity, brands can prevent falling into a "discount black hole," where revenues grow but profitability shrinks—a common festive season trap.

14. The Warehouse Dilemma: Managing Storage for High-Volume Holiday Orders

Inventory management can become a logistical nightmare during the holidays.

Overfilled warehouses led to delayed shipments and higher Return to Origin (RTO) rates in 2023, with 43% of Indian D2C businesses facing storage issues during the Diwali season.

These challenges increased operating costs by 12%.

Adopting automated warehouse management systems (WMS) or on-demand warehousing, where brands can dynamically scale space based on real-time inventory, can help solve these bottlenecks.

Analysing historical storage and shipping data will help ensure smooth holiday operations, minimising both costs and delays.

15. AI-Driven Personalisation: The Secret Sauce to Higher Conversion Rates

Personalisation has advanced beyond "Dear [Name]" in emails and other messages. In 2023, Indian D2C brands using AI-driven personalisation saw an 18% higher conversion rate.

AI tools analyse customer behaviour to recommend products, upsells, and the optimal time for marketing communications.

This data-driven approach ensures each customer receives a uniquely curated shopping experience, increasing engagement and revenue.

16. Sustainability as a Differentiator: The Eco-Friendly Shopper is Here

Sustainability is becoming a core consideration for Indian consumers. 

67% of Indian customers are willing to pay more for eco-friendly products, and brands that adopt sustainable practices can carve out a niche in the crowded holiday market. Brands offering biodegradable packaging or green delivery options saw a 7% increase in customer retention post-2023 holidays.

Eco-conscious holiday shoppers are growing in numbers, and incorporating sustainability into the supply chain will both drive sales and improve brand loyalty.

17. Data-Driven Product Bundling: More Than the Sum of Its Parts

Bundling products is a powerful holiday strategy, but it’s not about arbitrary grouping. D2C brands that used data-driven bundling during the 2023 holiday season experienced a 25% increase in revenue. Analysing customer purchase history and preferences allows brands to create bundles that enhance value and maximise revenue.

For example, skincare buyers can be offered premium hair care products as part of a bundle, increasing both AOV and customer satisfaction without resorting to discounts.

Data-backed bundling provides a win-win: increased basket size for the brand and added value for the consumer.

Final Thought: It’s not about being perfect; it’s about being prepared. Address these gaps now, and you’ll not only survive the holiday season—you’ll thrive.