How small businesses, customers from ‘Bharat’ drove big growth for Amazon, Flipkart, Myntra in sales

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October 6, 2019 3:16 PM

Amazon and Walmart-owned Flipkart and Myntra had expected high growth from small cities during the festive sales and hence had strengthened their logistics to ensure the smooth customer experience.

Flipkart big billion days and amazon great indian festival sale starts for special members from todaySmall cities have been the key driver for this year sales of Amazon and Walmart-owned Flipkart.

Small cities have emerged as the key driver for this year sales of Amazon and Walmart-owned Flipkart, both in terms of customers and sellers. While Amazon saw 88 per cent new customers coming from small towns along with around 3X increase in unit sales from non-metro customers. Also, 209 Karigar sellers and 250 Launchpad sellers received orders during its annual sale, the company announced. For Flipkart, over 50 per cent of its Flipkart Plus shoppers came from tier-II cities and beyond while in terms of sellers, over 40 per cent transacting sellers were from tier-II and beyond cities. Also units from tier-III cities grew by 100 year-on-year and artisans associated with Flipkart’s Samarth programme also saw more than 100 per cent sales during the festive sales bringing Bharat closer to India. However, both the companies didn’t disclose the actual figures.

While for Flipkart Group CEO Kalyan Krishnamurthy the annual sale has “proven that Bharat has moved closer to India in more ways than one,” as said in a statement; for Amazon India country head and senior VP Amit Agarwal it was exciting “to see that small business across India are embracing technology to find success with Amazon.” Citing a Nielsen report, Amazon claimed in a statement that the “highest share of transacting customers and purchases across all online shopping platforms in the first five days,” of its sale.

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Walmart-owned fashion marketplace Myntra’s annual festive sales, which coincided with the annual events of Flipkart and Amazon, also saw small cities leading the growth. The company saw more than 56 per cent of the overall sale coming from tier-II and tier-III cities, the company announced on Saturday. The six-day sale from September 29 to October 4 for Myntra attracted 1.9 million customers shopping for 6.43 million items from more than 3,000 brands and over 7 lakh styles, the company claimed. This helped Myntra log a 33 per cent increase in orders from last year sale and 60 per cent overall growth.

The sale registered “4.3 lakh new customers,” on the marketplace according to Amar Nagaram, Head, Myntra Jabong. Moreover, with 1.9 million shoppers, the company witnessed a 32 per cent rise in traffic from last year sale, Nagaram said in a statement. In addition, there were 4.9 lakh new members for Myntra’s loyalty programme — Myntra Insiders during the sale.

Amazon, Flipkart and Myntra had expected high growth from small cities during the festive sales and hence had strengthened their logistics to ensure the smooth customer experience. While Flipkart had on-boarded nearly 27,000 kirana stores based in 700 cities and had launched the Samarth programme focusing on artisans, weavers, and handicrafts makers, Amazon had expanded the capacity of its fulfilment centres (warehouses) to over 26 million cubic feet of storage space for sellers inventory, PTI reported, along with doubling its delivery partner network with over 1,400 ‘delivery stations’ across 750 cities. Myntra too expanded its network of kirana stores to more than 15,000 to “manage 70 per cent of the deliveries” across 50 cities.

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