E-commerce companies are bracing for a bull run this festive season, eying manifold growth in sales in the October-November period through exclusive brand tie-ups and product launches. The likes of Flipkart, Amazon, Snapdeal, eBay, ShopClues and Paytm are gearing up to unleash a blitzkrieg of ad campaigns, which may cost in excess of R200 crore and deep discounts to the tune of 50-70%.
The retailers expect to clock over 75,000 daily sales this festive season in categories like electronics, fashion and lifestyle and home decor. A slew of special offers, including steep discounts and freebies, will be unveiled in the coming weeks to keep consumers glued to online shopping. The efforts are paying off, with a Google study suggesting that online-shopping related searches peaked in the week beginning September 28. Buoyed by the responses, the e-tailers are aiming at least a 50% jump in sales against the year-ago period. The festive season this year kick-started with Onam and will continue till Diwali.
“Customers can avail free shopping coupons and bumper discounts of about 70% across a wide range of products. Free iPhone 6 for the highest spending customer between noon to 6:00 pm is also on offer,” said Shivani Dhanda, head-marketing, eBay India. eBay, which was one of the earliest e-commerce companies to enter India nine years ago, has tied up with large format retail chains like Viveks and Sangeetha Mobiles, besides partnering with Karbonn Mobiles and Intex for exclusive launches.
Flipkart has launched a Big Billion Day campaign, handpicking October 6 for showering bounty on customers to coincide with flat number 610, where co-founders Sachin and Binny Bansal started their journey in 2007. The company promises unprecedented discounts across 70 categories, besides flash sales and lucky draws.
Exclusive brand tie-ups are high on agenda for every e-tailer. Online fashion store Myntra will collaborate with around 20 brands to launch some of their products exclusively on its platform by the first week of October. It has tied up with brands like Puma, Vero Moda, Jack and Jones, Biba and Lee. Myntra will also add three more private brands to its kitty of eight before Diwali.
“We are launching three private brands around Diwali, one in the formal category, one in kidswear and the other a licensed brand. We will continue to grow our private brands as they are important both from a differentiation point and also profitability aspect,” Ganesh Subramanian, COO, Myntra, told FE.
He added that Myntra is expected to clock three times higher revenues compared to the 2013 festive season.
In a bid to penetrate a customer base comprising 243 million internet users, the e-tailers have earmarked a substantial amount towards ad spends. For instance, Shopclues, which will offer freebies in the form of a complementary product or a discount coupon for every purchase made from the Diwali Promotion on its website, launched its maiden TV commercial two weeks ago.
“We’re expecting a 40-50% increase in sales in the festive season. Just launched our maiden TVC two weeks back and this will be supported by other mass-media activities. We’re also banking heavily on the digital medium for customer outreach,” said Radhika Ghai Aggarwal, co-founder and CMO, ShopClues.
Mobile commerce platform plans to spend Rs 100 crore more on advertisement during the rest of the calendar year.
The company, which is on the verge of closing some exclusive tie ups in the mobile, fashion and sports categories, is aiming Rs 200 crore in revenues this festive season. “We have come up with a set of unique offerings in terms of Diwali gifting and sweets, aiming at capturing a small piece of the large gifting pie this season. Electronics, fashion and home decor categories see the maximum uptakes during this season,” said Pratyush Prasanna,VP-Business, Paytm.
Free shopping coupons and bumper discounts of about 70%; free iPhone 6 for the highest spending customer between noon to 6 pm
Unprecedented discounts across 70 categories, besides flash sales and lucky draws under the Big Billion Day campaign
Collaborate with around 20 brands and launch some of their products exclusively; add three more private brands before Diwali.
Freebies like a complementary product or a discount coupon for every purchase from Diwali Promotion
Unique offerings like Diwali gifting and sweets
Sayan Chakraborty | The Financial Express