Fynd’s Festive 2025 report shows rise of Tier 3 shoppers and omnichannel growth

Fynd has released its Festive Season Report 2025, outlining how India’s e-commerce market is shifting from discount-led peaks to operational efficiency, wider regional participation and stronger omnichannel adoption. The report analyses performance across more than 60 brands on platforms including Myntra, Flipkart, Amazon, AJIO, Nykaa and Tata CLiQ through the September–October festive period.

The findings point to sustained demand from Tier 2 and 3 cities, which together accounted for 65% of total orders. Tier 3 cities alone contributed 46%, signalling deeper penetration beyond metros. Delhi, Maharashtra and Uttar Pradesh were among the top-performing regions, while Gujarat showed steady growth. Southern markets, led by Karnataka, contributed significantly to both demand and fulfilment and saw the highest adoption of digital payments. Digital payments formed 53% of transactions, while cash-on-delivery continued to hold ground in smaller towns.

Footwear saw a major rise in contribution—from 7% to 33% of festive sales—indicating widening consumer comfort with fashion categories beyond apparel. Marketplaces continued to consolidate share, with Myntra and Flipkart together accounting for 89% of order volumes. The report also highlights rationalised discounting, as the average rate dropped from 44% in 2024 to 34% in 2025.

Store-based fulfilment reached 51%, matching warehouse fulfilment for the first time. Fynd suggests this prevented an estimated 4% of potential lost sales by enabling better cross-location routing and faster delivery.

“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.”

It also places India within a global context marked by cautious optimism and greater emphasis on value-led purchases, while noting that India’s mix of affordability, digital uptake and regional diversity continues to differentiate its e-commerce growth trajectory.