Flushed with funds, these companies will drive sales online by offering attractive offers and discounts. While Flipkart recently raised $1.4 billion from Tencent, eBay and Microsoft, it raised another $2.5 billion from Softbank.
After seeing a slump in the sales of consumer electronics due to the rollout of GST and the lingering effects of demonetisation, the consumer electronics segment will get a fillip due to the offers and discounts thrown by big e-commerce in the Indian market during the festive carnival. The clash of e-commerce majors — Amazon vs Flipkart — during the festive season sale will witness the heavyweights trying to outperform each other. While trying to garner market share, these companies will entice and lure consumers with heavy discounts and cashbacks that are likely to drive up the sales, said a recent report by Euromonitor International. The report said, “Flipkart and Amazon’s sales will look to offset the slump in consumer electronics sales due to lingering effects of demonetisation and the recent introduction of a new tax regime.”
Flushed with funds, these companies will drive sales online by offering attractive offers and discounts. While Flipkart recently raised $1.4 billion from Tencent, eBay and Microsoft, it raised another $2.5 billion from Softbank. Amazon has already committed $5 billion and recently pumped in Rs 1,620 crore in Amazon Sellers Services. Smartphones and laptops will be the key areas of focus for these online retailers as they look to outperform each other. To tap into the unmet potential and reach the rest of the population, internet retailers will look to further streamline their logistics and improve turnaround time to effectively cater to the growing demand for smartphones from tier-III and tier-IV cities, stated the report.
According to market estimates, the e-tailing industry will see sales worth $2.8 billion in this festive season, compared with $2 billion last year. Even a recent RedSeer analysis said the September e-tailing sales days generated gross GMV of about $1.7 billion. The Euromonitor report also said while Flipkart’s performance is profoundly dependent on the sale of consumer electronics, especially smartphones through exclusive deals, Amazon India is looking to augment the penetration of consumer electronics to smaller cities and towns through the launch of offline shopping initiative in Udaan.