This festive season, bigger e-commerce sales set to light up volumes
festive season sales are expected to bring the steepest online discounts since Covid, up to 60% in certain categories, with several ecommerce majors indicating a push to expand volumes.
Walmart-owned Flipkart, Amazon India, Reliance Retail's Jiomart and Ajio, as well as Tata Neu are all expected to roll out attractive offers across categories such as smartphones, electronics, fashion and fast-moving consumer goods (FMCG).
Executives of the brands selling online said a 10-20% higher budget from last year has been allocated for online promotions, including discounting, this year, leveraging lowering input costs.
Average discounts are estimated at 20-30% in the electronics segment, 50-60% for fashion products and 30-40% for general merchandise.
Mid-to-premium blitz
In a rare move, ecommerce marketplaces and platforms have also lined up pre-festive sales from this week that will run till the main sales begin around October 8-10.
Emails sent to Amazon, Flipkart, Reliance Retail and Tata Neu remained unanswered till press time.
Discounts are likely to be the steepest for mid-to-premium models as companies want to improve their festive season sales growth over last year. Smartphone brand Realme, for instance, is going to spend ₹800 crore on consumer offers this season, compared with Rs 700 crore last year.
Mobile phone industry researcher Counterpoint Market Research expects smartphone brands to offer discounts upwards of 10-15% this year, and as high as 20-25% on their 4G models, said Tarun Pathak, its director of research.
«Several brands are sitting on 13 weeks of unsold 4G smartphone inventory, as compared to eight to nine weeks for the overall industry. Hence, they will clear the 4G stock,» he said.
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