MAM
Indian customers spent 11 per cent more during Rakhi festival in 2023
Mumbai: The amount of money Indian customers spent during the Rakhi festival week this year increased by 11 per cent compared to the festival in 2022. The average order value was Rs 2,055. Admitad’s affiliate network analysed over 400k orders across more than 350 brands to understand how customers behaved during the Rakhi holidays last year, and how they changed their preferences this year.
It can be seen that during the holiday week, many more people in the country chose to stay at home and shop using their computers – the percentage of mobile orders was only 45 per cent. In comparison, during the recent Independence Day, it reached 69 per cent, and on average during the “quiet period” – 48 per cent.
What was purchased during the festival?
Up to 40 per cent of orders this year were made on marketplaces – their influence has increased significantly since last year. The number of orders from major marketplaces during the festival jumped by more than 50 per cent. This could be expected, because many leading marketplaces prepare special sales, promotions and coupons for each holiday, and thus can maximize conversion among their customers.
25 per cent of all orders during the festival were for clothes, shoes and accessories – the number of purchases in this category increased by 16 per cent compared to last year. Next came beauty products with 8.5 per cent of purchases. Six per cent of orders went to the category of home goods and four per cent to food delivery. Interestingly, the number of food and grocery orders at Rakhi Festival more than doubled compared to last year and this category was one of the leaders in terms of purchase growth.
What attracted the shoppers?
Speaking on the report, Mitgo managing director, APAC and India Neha Kulwal said, “According to Admitad’s calculations, this year’s leaders in attracting orders during the festival were cashback services – they accounted for up to 26.6 per cent of all orders. Interestingly, their popularity has almost doubled compared to the Rakhi Festival last year. Apparently, the major players in this market have put a lot of effort in preparing promotional campaigns this time.”
17 per cent of the orders were brought to brands by content platforms and online media, which traditionally prepare reviews of the best gifts, dishes and ways to spend the festival. Indian shoppers do indeed pay attention to such articles, click on the links in them and buy the recommended products.
Another 10.5 per cent of orders came from coupon services, 10.3 per cent from contextual advertising, 7.5 per cent from affiliate stores, 6.7 per cent from mobile applications, and 6.5 per cent from loyalty programs.
The latter, by the way, were much more influential during the festival period than last year. Purchases based on recommendations of loyalty programs this year during the festival increased many times over. This trend, coupled with a significant increase in sales on marketplaces and through cashback services, makes one think that earlier big companies did not pay enough attention to the Rakhi holiday, but in 2023 they have fully included it in their agenda and made thorough preparations to spur user activity.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
