The competition in the online shopping space in India is likely to heat up this festival season with one more player planning to splurge in order to woo customers.
According to media reports, Alibaba-backed Paytm Mall is planning to spend about Rs 1,000 crore this festive season, giving a tight competition to domestic e-commerce stalwarts Amazon and Flipkart.
According to a report in The Times of India, the amount earmarked will be utilised for marketing, cashbacks and promotions. It says, however, most of it will be spent on discounts.
Another report in The Economic Times notes that the amount to be spent is three-fold over last year's expense of about Rs 300 crore by Amazon India, Flipkart and Snapdeal . This year, although New Delhi-based troubled etailer Snapdeal is not in the fray, Paytm Mall will more than compensate for it. It is to be remembered that this will be the first festival season of Paytm Mall, which was spun off into a separate app in April this year.
According to the report, the company is planning to add about 5,000 branded stores to its platform ahead of festival season sales.
"This festive season, while online retailers will focus on spending money and taking away business from shops in the neighborhood, we will work with them and bring special offers for consumers to shop from their nearby markets by enabling these shopkeepers with mobile technology," Amit Sinha, COO, Paytm Mall, has been quoted as saying in the report.
The company owned by Paytm Ecommerce recently refreshed its app featuring 1,000 brand stores and 15,000 brand- authorised retailers selling over 65 million products.
Its aim is to clock a gross merchandise value (GMV) run rate of $4 billion by the end of March next year on the back of strong growth in transactions on its platform.
The e-commerce firm expects strong demand in categories like electronics, appliances, FMCG and fashion to drive its growth.
The brands the company is looking at include Apple, Samsung, HP, Lenovo, JBL, Philips, Puma, Allen Solly, Lee, Pepe, Levi's, Fossil and Vero Moda, among others, to drive growth.
However, analysts quoted in the ET report feel Paytm Mall may find it difficult to make a mark in fashion and retail even as consumer electronics and appliances may not be a major issue.
With all the players drawing up strategies to attract consumers, buyers can definitely expect a great festival season ahead with mouth-watering discounts.
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Updated Date: Sep 04, 2017 10:57:32 IST