The festival season, which is
All three say that this
As per industry estimates,
While the gross sales number
Where holding ‘multiple’
Discounts or No Discounts, Consumers Will Shop Online
The Department of Industrial
As a result, there were
Due to this, despite less discounts and offers this year, consumers thronged to e-
Where home-grown major
Amazon said that it sold
At the end of the three waves of sales, Amazon India said it sold nearly three times more products this October than in the same festival month last year and it has experienced the biggest ever festive season since launch in the country over three years back.
The numbers clearly signify that consumers are slowly but gradually proceeding towards an e-future where online shopping is not just about price but also about convenience, products and options available.
Consumers Like Exclusivity
In order to grab the bigger share of the e-commerce pie this Diwali, e-tailers left no stone unturned to
For e-commerce companies,
Flipkart, which made its platform available exclusively for US tech giant Apple to sell the latest
Similarly, Amazon struck exclusive deals with
While its unclear who won the exclusivity game, a research by Ugam – a firm that provides market research, analytics, and online marketing services for e-tailers and comparison shopping engines – said that Amazon offered 70 per cent of the most preferred smartphones in exclusive deals on mobile phones and thus was far ahead of its nearest competitor, Flipkart.
As per analysis, what is interesting is that almost half of the top exclusive smartphones on Flipkart were also available on Amazon. This includes Lenovo K3 Note, LeEco Le 2, and the Lenovo Vibe K5. However, Flipkart was priced lower than Amazon was for two out of those three smartphones, Ugam said.
COD is Passe, Consumers Like Prepaid Option
It’s an established fact that the
However, during this year’s
Home-grown major Snapdeal was the first to spot this trend. The company – which partnered with eight leading banks this Diwali including with American Express, Axis Bank, Citi Bank, HDFC Bank, Kotak Bank, Standard Chartered Bank, State Bank of India and Yes Bank – said that there was sharp increase in willingness of customers across India to pay at the time of making the purchase instead of opting for COD. This was in part driven by additional instant discounts ranging from 10-25 per cent that were available every day of the month, over and above the huge festive discounts.
Flipkart’s co-founder & CEO Binny Bansal said the average order size was up 20 per cent compared to regular days. Flipkart also claimed it brought in 1.5 million new customers this year versus one million that came on board last year even as COD orders came down from 70 per cent to 60 per cent of all Big Billion Day transactions.
Amazon India offered an additional 15 per cent cashback for customers using SBI Bank’s debit and credit cards. And Flipkart offered additional 15 per cent cashback when using Citi and HDFC Credit and Debit cards.
“Exclusive privileges and financial benefits being offered by portals like Flipkart, Amazon.in, Snapdeal, and Shopclues are backed by additional discounts through strategic partnerships with various banks like HDFC, SBI, ICICI Bank, Standard Chartered, American Express etc. These partnerships have played a pivotal role in increasing sales and order value this festive season,” Founder of CashKaro.com, Swati Bhargava, told Indiaretailing.com.
The decline in COD shows that more Indians now trust online platforms to deliver the goods.
Small-Town India Goes Big Online
The dreams of Indian e-commerce majors to march into smaller cities finally seemed to be making progress this year after many attempts to amp up business from these towns.
“Historically, small town consumers have been value conscious but online sales events – coupled with various cashback offers – have encouraged people to shop online. While last year metro cities vs small town participation ratio was 70:30, this year it went up to 60:40,” Bhargava said.
“Also until last year, categories like mobile phones and electronics were doing well in these towns but this year, fashion has also picked up well signaling a trend towards aspirational shopping in these towns,” she added.
E-tailers back this statement. Amazon India said among that the 15 million units it sold during the first leg of the Great Indian Festival, orders came from 90 per cent of India’s pin codes. The number of new customers increased five-fold over last Diwali with 70 per cent of new shoppers coming from tier II and tier III towns. Overall, 65 per cent of Amazon’s orders come from towns categorized as tier II (population of one million) and below.
Rival Flipkart says sales from tier II and below cities went up to 42 per cent from 34 per cent in the past one year.
Snapdeal too saw a significant jump in the orders from the small towns. The company said that the traffic from tier II and III cities increased by 20 times, with maximum surge, other than metros, coming from Mizoram, Meghalaya, Goa, Himachal Pradesh and Jammu & Kashmir in that order.
E-commerce war is Alive,
Such was the intensity of this Diwali’s e-commerce sales showdown, that arch rivals Flipkart and Amazon even resorted to taking jibes at each other
It was Flipkart that fired
“(Flipkart’s) total units
The statement was in response to Amazon’s
Amazon, however, was quick to give a fitting reply. Amazon India Head, Amit
The open barbs and mocking shows that e-commerce face off is not settling down any time soon. With speculations being rife that China’s major Alibaba is all set to make a big bang entry in India – probably in the next year – the game is all set to intensify further.