Home / Business & Startups / Home Decor Spending Climbs 25%, FMCG Tops 16% This Summer as AI Drives India’s E-commerce Growth

Home Decor Spending Climbs 25%, FMCG Tops 16% This Summer as AI Drives India’s E-commerce Growth

The way Indians shop online has changed significantly over the past few years. What began as a market driven largely by discounts and festive sales has evolved into one where technology, faster fulfilment and higher-value purchases are driving the next phase of India’s e-commerce growth.

Average order values rose by more than 25% in Home Decor & Furnishings and over 16% in fast-moving consumer goods (FMCG) during this year’s summer sale season, signalling stronger consumer spending across both discretionary and everyday categories.

Brands also recovered orders worth more than Rs 1.3 crore through AI-powered customer engagement, while order volumes remained strong throughout the sale period, according to an analysis of transactions and customer engagement data across Unicommerce’s ecosystem of solutions.

Artificial intelligence (AI) also played a bigger role during the summer sale season, helping brands recover abandoned purchases and improve order fulfilment. AI-powered voice calls reached more than 1.15 lakh shoppers and helped recover orders worth over Rs 1.3 crore, delivering a return on investment (ROI) of more than 15 times. The AI voice solution, Catalyst, is offered by Convertway, Unicommerce’s customer engagement platform.

Beyond recovering lost orders, AI also helped brands improve fulfilment efficiency. During the sale period, nearly 1,000 AI-enabled automated messaging campaigns powered by Convertway reached more than 34 lakh consumers, helping brands improve customer communication and marketing efficiency during one of the busiest shopping periods of the year.

Consumer demand also remained resilient despite the first major summer sale beginning on May 7 this year, compared with May 1, 2025. Despite the delayed start, order volumes stayed strong throughout the sale period. Compared with the corresponding weeks last year, orders grew 29% in the opening week, peaked at 41% in the second week, and remained higher by 14%, 24% and 32% over the next three weeks, indicating sustained shopping momentum.

Quick commerce also continued to expand during the summer sale season, with order volumes growing by more than 60% year-on-year. Nutraceuticals & Supplements and Home Decor & Furnishings accounted for the largest share of quick commerce orders, while Beauty & Personal Care recorded the fastest growth, followed by Health & Pharma and Fashion & Accessories, highlighting how the channel is extending beyond grocery and convenience purchases into a wider range of categories.

Order fulfilment also improved during the summer sale season, with return-to-origin (RTO) rates falling to 17% from around 25% in the corresponding period last year, according to data from Shipway, Unicommerce’s logistics platform. Mizoram, Chandigarh, Puducherry, Goa and Kerala recorded the lowest RTO rates, reflecting stronger delivery performance and fewer returned shipments.

Together, the findings reflect how India’s e-commerce sector is evolving beyond discount-led sales, with technology, higher consumer spending and operational efficiency emerging as key drivers of its next phase of growth.

Got questions or experiences to share? Comment below or connect with me on Instagram @samuelmjosh and LinkedIn: https://www.linkedin.com/in/samuel-joshua-maddela-ab210b1b9

Tagged:

Leave a Reply

Discover more from Sams Trend Script

Subscribe now to keep reading and get access to the full archive.

Continue reading