October is a festival time in India and in the last three years, it has been a market pitch by Flipkart vs Amazon vs Snapdeal wooing online customers with different pitches of discounts. Before flling for the bait, check the price with previous years and previous discount occasions. More so, when you are buying clothes online.
Despite Snapdeal’s presence, it would be mainly a cut-throat competition between Flipkart’s Big Billion Days sale From Oct 2 to 6, 2016 and Amazon India’s Great India Sale will be from 1-5 October. Snapdeal’s Unbox Diwali from October 2 to 6 is also there with eye to catch significant share this year.
Flipkart said it will sell US tech giant Apple’s 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," said Flipkart.
Flipkart has a variety of mobiles on its platform from Samsung’s Galaxy On8, Motorola’s E3 Power, Xiaomi’s Redmi 3S, besides TVs from BPL and LeEco. Amazon has mobiles such as Lenova Z2 Plus, Lenova Vibe K5 and OnePlus 3, up to 57 exclusive smartphone tieups.
However, Flipkart is hoping to retain its hegemony over the festive sales this year too with its Myantra fashion sales. Myntra is expecting a five-fold increase in its daily sales during the festive season with Forever 21, Marks & Spencers and French Connection on its platform.
Amazon India has tied up with Aditya Birla Group’s online fashion store abof, which has more than 1,000 apparels listed already on its platform. This is in addition to Amazon Fashion that already includes brands from Madura Garments and Pantaloons.
In addition, Amazon is offering a 2-bedroom flat in north Bengaluru in a lucky draw in partnership with Brigade group in Bangalore. It has signed up another deal with Chevrolet to gift two Cruze models costing Rs.20 lakh each, and 8 Beat cars, worth Rs 4 lakh each.
Despite government’s stickler not to offer discounts, sellers are still able to offer 10% and 70% discounts cutting in on commission and providing incentives for larger sales.
More than that, several companies sell their 25 to 50% of annual stocks in one month, that is festival season of October, which has both Dussehra and Diwali lined up together.
While products, especially clothes do not have MRP (maximum retail price) pertaining to fashion and lifestyle products, there is scope for huge discounts in this segement but most of them could be tricky and may even be costlier than otherwise, warn market analysts.
Though the advertisements may say 80% discounts, the reality is that merely 10 to 20% discount on electronic and household appliances while clothes may be going out at 80% discount since they are not like-to-like comparative prices.
Otherwise, festive season is set for $1.5 billion sales this year, almost Rs.10,000 crore in October month alone, thanks to the festive pitch by e-commerce companies.