Though industry experts estimate the sales of two of India’s largest online marketplaces, Flipkart Group and Amazon India, to decline by 12-15 per cent sales to $3.7-4 billion during the crucial festive season, both companies expect to clock in a combined GMV of about $5 billion (Rs 36,000 crore) in October 2019. These two marketplaces are riding their hopes on the annual festive sale that will be held next month. This will be the first large event for these e-tailers after the e-commerce policy was revised from February 1.
Satish Meena, Analyst at Forrester Research feels, these ecommerce companies will be more aggressive with their marketing to push sales. Their sales volumes will increase only 20 per cent on-year, excluding services such as flights and hotel bookings. They will be affected by the economic slowdown, albeit on a lower scale than offline retail.
Companies to market their products more aggressively
To combat a slowdown, e-commerce companies will market their products more aggressively during this event. Flipkart will launch exclusive products during its flagship Big Billion Days sale, along with running contests and cross-selling across categories. It has also urged top brands to give 50-70 per cent discounts and make buy-one-get-one-free offers.
Amazon too plans to offer two-hour delivery for high-value items such as smart phones, electronics, furniture and high-repeat items such as grocery, with a focus on Prime Now app in top cities. The brand looks forward to celebrating the festive season with many more customers as top brands, great deals and financing choices will make products more affordable.