Online retailers Amazon, Flipkart, Myntra and Ajio are planning a slew of mega sale events every fortnight, and category-specific sales every seven to 10 days, in the coming months as they try to optimise offtake in a period when Covid-19 infectio...
Online retailers Amazon, Flipkart, Myntra and Ajio are planning a slew of mega sale events every fortnight and category-specific sales every 7-10 days in the coming months, as they try to optimize offtake during a period when Covid-19 infections are down and lockdowns have been lifted in most places, said executives of several leading consumer brands.
Traditionally, the big sales happen during the Diwali festival season, but the fears of a possible third wave are prompting e-commerce players to move aggressively earlier. These sales will also compensate the online retailers for the shortfall in April-May when the country was in midst of several local lockdowns. The chief executive of global lifestyle brands said e-commerce companies are planning “crazy” sale events from July onwards.
“They are thinking that we have a Big Billion kind of sales in October but what if the third wave strikes,” he said, asking not to be named. “Right now things are open, sentiment is okay so they are thinking to generate whatever business they could in the coming months. They are now taking a month by month approach. Their aim is to make hay while the sun shines.”
E-commerce platforms generally do sales from time to time every year but the intensity, a number of days and the quantum of offers in the coming months would be steeper. In June, for instance, the number of sale days for consumer electronics and smartphones was more as compared to January to March, said three executives. These executives said there are going to be at least 15-20 days of discounts on e-commerce platforms per month till September for these categories compared to the average of 10-12 discounting days in the Jan-Mar quarter. Amazon, Flipkart, Mutra and Ajio did not respond to emails seeking comments.
Avneet Singh Marwah, chief executive at SPPL, the company that sells Thomson and Kodak televisions online, said the increase in discount days from June onwards is to drive traffic, compensate for the lost business in April-May and to hedge against the possibility of a dip in sales due to the third wave later in the year.
ADVERTISEMENT
A senior executive with a leading online-focused smartphone maker said several markets, like in the south, still have reduced operating hours and hence e-commerce companies see it as an opportunity to drive business through promotions. “Most discounts are through bank offers in partnership with banks,” he said. E-commerce accounts for almost 45% of all smartphones sold in India, 30% for television, 15-20% for home appliances, and 25-40% for fashion brands, as per market trackers and industry estimates.
E-commerce platforms are also being able to offer better than usual discounts on fashion and lifestyle products as they are currently being able to buy them at 60-70 per cent discounts, as compared to the general 50-55 per cent rebate, as companies and brands look to offload their inventories. Companies said most offers from marketplaces will be aimed at triggering a higher volume of purchases with additional discounts or incentives for buying more.
Ajio is starting its ‘Big Bold Sale’ between July 1-5, and will offer 50-90% discounts on fashion and lifestyle items. Similarly, Myntra’s ‘End of Reason Sale’ between July 3-8 is offering 50-80% rebates on thousands of brands. Myntra expects over 50 million shoppers to visit its platform for their upcoming 6-day sale event, a 75% jump compared to the same event held in June 2020.
