Small Towns Help Flipkart Extend Lead Over Amazon In Festive Sales Battle.


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Small Towns Help Flipkart Extend Lead Over Amazon In Festive Sales Battle.

SMALL TOWNS HELP FLIPKART EXTEND LEAD OVER AMAZON IN FESTIVE SALES BATTLE INTRODUCTION • Walmart Inc.-owned Flipkart extended its lead over Amazon Inc. during the first week of online festival sales fueled by record number of first-time buyers and sellers from small towns. Source: bloombergquint.com BIG BILLION DAYS • According to report the ‘Big Billion Days’ by Flipkart group, including Myntra and Flipkart.com, accounted for 68% of the overall sales in the first week (Oct. 16-21). • High share of tier-2 shoppers and wide product offerings, the consulting firm said in a report, helped the online retailer maintain its leadership. Source: bloombergquint.com AMAZON • Amazon, which hosted the ‘Great India Festival’, could only capture about 32% of the total gross sales during the period. • The U.S.-based e-commerce firm, for the first time this year, has extended the event to a month against the usual practice of holding up to three sales leading to the Diwali festival. Source: bloombergquint.com INCREASE IN ONLINE SHOPPERS • Online shoppers have nearly doubled over last festive sales to 52 million this year. • About 60% of the shoppers, or 30 million, came from tier-2 and beyond towns. • But that lowered the overall average order value to Rs 5,500 from Rs 6,800. Source: bloombergquint.com FESTIVE SEASON • The festive season sale is crucial for e- commerce firms as they generate nearly a third of their annual sales from this event. • And the first week accounts for 60% of the overall festival sales done. Source: economictimes.com TIER-2 SHOPPERS • This year e-commerce firms are expected to ratchet up nearly $7 billion in the overall festive sales. • This was the year of tier-2 shoppers and Flipkart has been able to accelerate its strength and garner more market share, compared to Amazon, which is stronger in metros. Source: Inc42.com NEW APP INSTALLS • As per the report Flipkart clocked around 3.5 million new app installs this year, a 71% jump from last festive season. • That compares with Amazon’s 77% rise in new app installs to nearly 2.5 million during the period. Source: bloombergquint.com CASHBACK, EMIS OFFER FESTIVE SALE PUSH FOR ‘BHARAT’ • To cater to Tier 2 and Tier 3 India or ‘Bharat’ as it is called these days, the companies launched initiatives such as Flipkart’s no- cost EMI for shoppers who do not have credit cards and Amazon’s Project Udaan, under which the company had partnered with small stores like StoreKing and Vakrangee where shopkeepers helps customers shop online in rural areas. Source: inc42.com FASHION AND TECH RULE ON FLIPKART, AMAZON • The economic slowdown doesn’t seem to have impacted consumer appetite for the sales, particularly in the fashion category. • The platform had thrice as many transactions during the early access period, as compared to last year. Source: bloombergquint.com CHINA AND THE US STILL LEAD THE WAY • While the Indian ecommerce market is definitely booming in the festive period, the revenue generated in India is still a fraction of what happens on big shopping days in China and the US. Source: inc42.com