The great Indian e-tail sale this festive season is set to continue with a host of companies like Flipkart, Snapdeal, Amazon, others looking to woo consumers with big discounts. Both Snapdeal and Amazon plan to expand their offerings in coming weeks including a host of products that are top on Indian consumers’ list, while Flipkart itself is looking at a bigger version of its day long sale with a week-long offering starting this weekend.
?This festive season would be lot different from others as e-tailers have stolen the limelight with aggressive promotion and advertising campaigns,? said an official of leading retail consultancy firm who did not wish to be named.
The ongoing sale will get bigger in coming weeks. While Amazon which also ran a 3-day discount campaign, Mission to Mars between October 4-6, is planning next big sale, Diwali Dhamaka, between October 10-16, Flipkart is also planning a week-long programme during the same period. Snapdeal is expected to continue its ongoing scheme where discounts would be on offer on top of the line pedicts on each day running up to Diwali.
Flipkart’s ‘Big Billion Day’ sale helped the company to achieve record single day sales of Rs 600 crore on Monday, and its competitor Snapdeal too increased its daily average sale with company claiming to have reached sales of Rs 1 crore per minute, adding up to Rs 600 crore for it too.
But both these companies, particularly Flipkart, were also flooded with complaints on the social media of products disappearing after being shown on the screen and site crashing frequently preventing sale from being completed. Complaints ranged from technical errors, to comments on pricing scams, to lack of product variety.
The silent winner on the sale day appeared to be Amazon which strengthened its pool of offerings after leaning from the mistakes of others – but there were no sales figures released by Amazon.
Although e-commerce accounts for less than 1% of the total retail market in India, it is by far the fastest growing retail channel as has been reflected in the online buying frenzy for past few days. E-commerce is estimated to grow to as much as $22 billion (excluding travel) in five years from $ 3.1 billion currently, according to a November 2013 report by CLSA.
But has all this affected the offline store sale?
Not quite, it seems. ?The only change that is being witnessed is that margins on products have shrunk but volumes are more than making up for this. Besides, consumer has become the king with both offline and online stores offering bigger and better discounts this season,? said the official quoted earlier.
In fact, the traditional brick and mortar outlets, who bank on the festive season to bag more than a third of their annual business, also sounded out white goods manufacturers to arm them with schemes that would make their offerings fly off the shelves.
“I feel that even offline stores would gain as the buzz has been built around numerous products that are on offer,? the official added.