In the wake of controversy generated by Future Group chief Kishore Biyani’s criticism, online retailer Flipkart has defended its ‘Big Billion Day Sale’ of October 6 that offered heavy discounts on a number of products saying that such offers were common in the marketplace and helped sellers to attract a larger number of customers.
Flipkart at the most may provide ‘data intelligence’ to the company about what will be the best way forward for its goods during the sale – Flipkart does not impose price on companies, said a company spokesperson.
The Flipkart sale of October 6, attracted the wrath of several offline retailers including the Future Group, whose chief Kishore Biyani specifically targeted the company saying that the e-commerce company was undercutting the market and selling products at even below the cost price.
?Discounting during sales is not a new phenomenon and it helps sellers attract a larger customer base from time-to-time and grow their business,? said Flipkart.
Planning to buy the #iPhone6 or the #iPhone6Plus? It's up for preorder on Flipkart! http://t.co/jR8POF3J5D pic.twitter.com/5ejasNJNzF
— Flipkart (@Flipkart) October 13, 2014
?Sellers are the ones who decide on the pricing of their products ? and only they can change these prices,? the spokesperson added virtually shielding the company over allegation of undercutting to counter competition and log a larger sales number this festive season.
The Flipkart ‘Big Billion Day Sale’ offered customers big deals on a host of products with discounts ranging from 20-80%. It also offered few products like Samsung Tab 2 and few other products at rock bottom pricing under a steal deal offer. The sale, which also saw glitches galore on Flipkart site, helped the company to clock sales of Rs 600 crore on October 6.
We do not have any special sale planned at present but as its a festive season so regular offers will continue, said a Flipkart official.
Apart from angering brick and mortar retailers and a few white goods companies, who alleged that the e-tailer was indulging in predatory pricing, the sale also got noticed by the government with Commerce and Industry Minister Nirmala Sitharaman indicating that the government may well look into the entire issue.
Meanwhile, the Future Group, after coming down heavily on e-tailers, on Monday announced its strategic partnership with Amazon to sell 45 apparel labels online.
?Online marketplaces like Flipkart provide a platform for any brand or seller who wish to connect to million of Indian customers without having to step out of their houses,? said the Flipkart spokesperson reacting to the Monday’s development.
