Flipkart, Amazon Set to Spark Festive Sale Craze
GMVs may surge to $1.5 B as ecomm majors plan flagship sales in Sept; other promo events also on cards
Bengaluru: If you are looking forward to an extended annual festive season this year, so are Amazon India and Flipkart.
Ganesh Chaturthi arrives at the end of this month — nearly two weeks earlier than in 2016 — and the ecommerce giants are preparing to kick-off their annual flagship festive sales in September rather than in October. Both Flipkart and Amazon India will host smaller events this month in the run-up to the festive season that peaks with Diwali in October and stretches till Christmas.
The head-start into the festive season, analysts expect, could help stir up India’s online retail market that has been tepid for most of this year largely because of demonetisation and the introduction of a new tax regime in July. At least one analyst predicts up to a 66% GMV from the Big Billion Days sale by Flipkart and Great Indian Festival sale by Amazon expected to jump to
this year from shipments likely to grow three times over last year, according to logistics companies
marketplaces have planned their flagship sales in September surge in combined gross sales for Flipkart and Amazon India from their flagship sales over last year.
Flipkart’s Big Billion Days sale is scheduled for mid-September, according to several merchants on the online marketplace.
Amazon India’s vendors said it, too, is planning its Great Indian Festival sale the same month.
Ahead of that, Amazon will host a smaller Great Indian Sale from August 9 to 12. Flipkart will have a similar sale this month, according to its vendors. Both Amazon India and Flipkart declined to confirm the dates of their main festive sales. Combined gross merchandise value (GMV), a proxy for gross sales, for Flipkart and Amazon India from their festive sales events increased to $900 million in 2016 from about $300 million in 2015, Forrester Research said in a June report titled ‘The State of India’s Online Retail Market in 2017.’
Both the companies extended their flagship sales to five days last year from three days in 2015.
“This year, we expect the combined GMV to grow from $900 million to $1.2-1.5 billion during the Big Billion Days sale by Flipkart and Great Indian Festival sale by Amazon,” said Satish Meena, senior fo- recast analyst at Forrester India who authored the report.
Flipkart clocked GMV of $500 million from its festive sales in 2016 and Amazon India about $400 million.
According to the Forrester report, India’s online retail market grew 33.7% to $16.3 billion in 2016, significantly slower than its 114.4% growth in the prior year. Forrester forecasts the market to increase by about 31% to $21.3 billion this year.
The focus categories for this year’s festive sale will continue to be smartphones, followed by fashion including beauty and personal care, and home appliances, according to analysts.
“Some of the top categories customers love to shop for (on Amazon India) include smartphones, fashion, large and small appliances, consumer electronics and TV, followed by FMCG,” said Manish Tiwary, vice-president of category management at Amazon India. Last year, the company reported a 2.7-time increase in sales over 2015.