Rakhi Festival Brings Cheer to the Market

Rakhi sales across India are expected to reach nearly ₹25,000 crore this year, according to the Confederation of All India Traders (CAIT). With Rakhi Purnima falling on August 28, total business, including purchases of sweets, dry fruits, gifts, clothing and electronics, could cross ₹30,000 crore. Delhi alone is expected to account for around ₹4,000 crore of the business.

CAIT National Secretary Praveen Khandelwal said the flow of Chinese-made Rakhis has declined over the past two to three years, with consumers increasingly preferring locally made Rakhis and other Indian products. Young buyers, in particular, are showing greater interest in theme-based Rakhis, reflecting a shift in consumer preferences during the festive season.

Meanwhile, Amazon and Flipkart have increased certain fees and penalties charged to sellers on their platforms ahead of the upcoming festive season. Amazon India has raised cancellation charges for its Easy Ship and Self Ship services, with the revised charges coming into effect from August 17. Flipkart has introduced a three tier penalty system for sellers over order delivery-related defects and failures, effective August 23. Sellers say the changes could increase the burden on small and medium-sized businesses operating on thin margins.