India is a place of diversified culture where feasting and celebrations go together. But it brings a rapid commotion of discounts across e-commerce sites. Apart from eateries, e-commerce has spread its tentacles in various sphere of the market. It brings a sense of great enthusiasm especially among e-commerce companies. These e-commerce companies like Flipkart, Amazon offer more competitive price. A number of peers are insisted to follow the same trend to remain in the competition. Although October and November is considered to be the most crucial months in India since maximum sales are cracked down in these months, similarly November and December is considered to be the most pivotal months in U.S and U.K. as most of the celebrations are lined up.
For India Flipkart and snapdeal slug it out in the month of October and November in India which is almost equivalent of the U.S. Black Friday Sales. These months give a leverage to foster out the investment.
Flipkart’s big billion bonanza although was similar to a festival for Indians. People spent their entire day just to place their orders successfully. Behind this event-like 5 days, a lot many teams worked around the clock to make their targets achieved. Consequently the company managed to snap up 2.25million units within 12 hours of its 5-day sale and negotiated to kick-up on even Sunday.
Recently many e-commerce retailers have pumped in $ billion investments to derive ground in India. Although in this peak season private equity money gets dried up but just for the sake of driving up the sale, local e-commerce also pumped in investment to stay in the competition.
Various e-commerce companies witnessed flush of investments from the well-renowed companies like Accel Partner and consequently the retail online sale has increased by approximately 3%. Although it seems very insignificant, but it has created an impact of millions of dollars.
Flexible supply chain
Initially the top management of these companies were apprehensive about the supply part rather than demand. But it came to a surprise that the issues related to supply chain has made a negligible impact on the price-sensitive people. Maximum proportions of the people were just concerned about discount. They willingly waited for the product for couple of days. This is because of the fact that the company was not only assuring on the part of price but also on the quality simultaneously. Quality+discount further intensified the profitability of the festive bonanza.
Sales, coupons and cash-backs always play a very crucial role in creating a long lasting impact. According to a research firm, approximately 30% of Indian e-commerce company’s expenses are towards discount but it creates a long-lasting impact. During this event there are bonus cards for the customers which can be redeemed even after the end of this bonanza. People keenly wait for these bonanzas so that they can get 2 items which is not possible with retail stores.
This expense creates a long lasting impact not only for the customer and even for the e-commerce retailers as well.
Although a positive outlook of e-commerce managed to grab a lot many attention among the consumers but the culture of e-commerce during the festive season has made a worth of its valuation. This is due to the fact of soaring profit, flexible supply chain, and durability. These benefits have enabled the companies to organise more of the bonanzas. They understood the fact that they can make more money under pressure and don’t want to slide by the opportunity to competitors.
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