Fynd, an unified commerce platform backed by Reliance Retail Ventures Limited, today released its Festive Season Report 2025, revealing how the country’s online retail landscape is shifting from discount-driven growth to operational efficiency and smarter fulfillment.

With e-commerce penetration projected to cross 11% of total retail sales in 2025, India’s retail ecosystem is witnessing a wave of digital transformation fueled by broader access, convenience, and affordability. The growth during this festive season (September–October 2025) shopping period - marked by celebrations such as Onam, Navratri, Dussehra, Karwa Chauth and Diwali was powered by value-conscious consumers, the rise of Tier 3 markets, and the rapid adoption of omnichannel fulfillment models.

Drawing insights from over 60 brands across leading marketplaces such as Myntra, Flipkart, Amazon, AJIO, Nykaa, and Tata CLiQ, the report tracks performance across apparel, footwear, and fashion accessories categories. The findings reveal a maturing market — one where price sensitivity is giving way to value-driven confidence, convenience, and operational agility.

Among the top-performing regions, Delhi, Maharashtra, and Uttar Pradesh led in order volumes, while Gujarat showed steady growth as a rising demand hub. Southern states, led by Karnataka, contributed significantly to both demand and fulfilment, with Bengaluru and Hyderabad ranking among the top metro contributors. The region also stood out for leading the country in digital payment adoption. Overall, digital payments accounted for 53% of total festive season transactions, while cash-on-delivery remained popular in smaller cities, underscoring India’s hybrid retail reality where rapid digital adoption and traditional payment preferences continue to coexist.

Key Insights:

• Footwear surges: Footwear rose from 7% to 33% of total festive sales, signalling growing consumer confidence in online fashion beyond apparel. 
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• Semi-urban demand leads: Tier 2 and 3 cities together contributed 65% of total orders, with Tier 3 alone driving 46%. 
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• Marketplace duopoly persists: Myntra and Flipkart together captured 89% of order volumes, reaffirming their leadership in fashion e-commerce. 
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• Regional dominance: Myntra emerged as the most popular platform across the Northeast, while Southern states led digital payment adoption. 
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• Discounts rationalized: The average discount rate fell from 44% in 2024 to 34% in 2025 as marketplaces balanced aggressive promotions with profitability. 
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• Returns improve: Returns and RTO rates dropped sharply — Amazon halved returns to 8% and RTOs to 2%, setting a new post-sale benchmark. 
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• Omnichannel milestone: Store-based fulfilment matched warehouse fulfilment (51% vs 49%) for the first time, preventing nearly 4% of potential sales loss through better cross-location routing. 

“India’s e-commerce story is unfolding on its own terms—built on speed, proximity, and precision. This festive season proved that the real levers of growth are operational, not promotional—stores doubling as micro-warehouses, networks placing inventory closer to demand, disciplined pricing anchored in everyday value, and trust-driven payments.” said Farooq Adam, Co-founder, Fynd. “The brands that will win from here won't chase discounts; they’ll design for India’s regional realities, serve rising demand from smaller cities with faster fulfillment, and build prepaid trust. That is the uniquely Indian model of profitable and resilient scale we’re creating.”

Beyond topline growth, the findings underline a broader structural evolution in how brands are approaching festive commerce. From rationalized discounting and improved logistics efficiency to regional diversification and digital payment adoption, the report paints a picture of a market moving beyond festive spikes to year-round operational excellence. For retailers, the message is clear — the next phase of growth will be powered by agility, omnichannel readiness, and sharper consumer segmentation.

Globally, the report places India within a context of “cautious optimism” observed in mature markets, where consumers are prioritizing essentials and value-led purchases. Yet, India stands out with its blend of affordability, digital adoption, and regional diversity, making it one of the most dynamic e-commerce markets worldwide.