As the big sales events in the e-commerce draw near India's top-notch the battle for market share by ecommerce companies have reached a fever pitch. However, the key to success lies in their ability to offer wide-ranging products envisaging smartphones, TVs and home appliances.
For online retailers, these product categories have always contributed maximum sales because of the availability of variety of branded electronic goods besides reasonable discount offers available on them compared to the price tag in other retail outlets.
With the festive sale offer season ready to go live in the next 24 hours time, online retailers like Flipkart and Amazon are going extra mile to stitch exclusive deals with number of smartphone and TV companies. For Flipkart, this festive sale season will be of immense important in the wake of rising competition with its nearest rival Amazon, which is virtually gunning at its throat to dislodge its number one position through its big-bang expansion plans.
To start with, Flipkart will be holding its Big Billion Days sale between 2-6 October, and the Amazon India sale will be from 1-5 October. On Thursday, Flipkart said it will make its platform available for US tech giant Apple to sell the latest edition of iPhone on its platform from October 7. This is the first time that Apple has collaborated with an e-commerce company in India to sell a new iPhone version. "Flipkart will offer iPhone 7 and iPhone 7 Plus... beginning on October 7," Flipkart said in a statement.
For smartphones, the Bengaluru-headquartered company has partnered with Samsung's Galaxy On8, Motorola's E3 Power and Xiaomi's Redmi 3S, while the online retailer has sealed exclusive deals with BPL and LeEco for TVs.
India's second-biggest online retailer Amazon, too, has got several smartphone players on its board for this festive sale season. It has struck exclusive smartphone deals with Lenova Z2 Plus, Lenova Vibe K5 and OnePlus 3, with a total of 57 exclusive smartphone tieups, says a Mint report.
For ecommerce companies, electronic goods form 70 percent of gross sales, and within electronics smartphones are the leaders followed by TVs, a Mint report said citing market researcher RedSeer Management Consulting.
Despite the exclusive partnerships, Flipkart may hold edge over its rivals due to additional sales its fashion etailers Myntra and Jabong could deliver this festive season.
According to a Business Standard report, Myntra is expecting a five-fold jump in daily sales during its upcoming festive season sale.
For this, Myntra has entered into exclusive partnerships with leading brands such as Forever 21, Marks & Spencers and French Connection for the five day festive sale, the BS report said.
To spruce up its fashion sales, Amazon India has signed deal with Aditya Birla Group-owned online fashion store abof, which will list more than 1,200 products in apparels, a Mint report said.
“This launch from the house of Aditya Birla Group further enhances selection on Amazon Fashion that already includes brands from Madura Garments and Pantaloons," Mint report quoted Arun Sirdeshmukh, head, Amazon Fashion, India.
Not to be left behind, Amazon will be burning more cash not just on discounts but by offering freebies to customers in order to generate robust sales this festive sale season. According to a Times of India report, Amazon India will be offering a 2-bedroom flat in north Bengaluru through its lucky draw, and has partnered with developer Brigade group.
Similarly, the online retail giant has tied up with Chevrolet to gift two Cruze model cars, worth Rs 20 lakh each, and 8 Beat cars, worth Rs 4 lakh each, the ToI report said.
Amazon has already made a commitment to spend $5 billion in its Indian arm, and a media report yesterday said the company will invest another $2 billion here, taking total investment to $7 billion.
This comes a day after news reports said Walmart, the US-based and world's largest retail behemoth, is in advanced negotiations to invest $1 billion in India's largest online retailer Flipkart in return for a small stake in the latter.
Online retail companies are also likely to push sales of large appliances such as televisions, washing machines and refrigerators this festive season, the category ecommerce companies are betting big with huge potential.
Earlier this month, Flipkart said under its product exchange programme, it will keep prices of TVs lower by asking brands to do away with select non-essential features. In effect, the company said customers will get smart TVs of some big brands at prices the basic TVs are sold.
While the TV segment makes up for more than half of the large appliances business for the company, Flipkart has set a target to triple its market share to 20 percent of all LED TVs sold in the country in October.
Finally, ecommerce companies having robust exposure to categories like smartphones, fashion and large appliances will be able to dominate this October sale season, the Mint report said citing RedSeer Consulting.
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Updated Date: Sep 30, 2016 11:38:10 IST