Indian internet is all set to turn shoppers’ paradise for a week starting tomorrow (Sept. 28).
Indian internet is all set to turn shoppers’ paradise for a week starting tomorrow (Sept. 28).
Amazon $AMZN India will kickstart its annual Great Indian Festival sale at noon; a day later, Flipkart’s flagship Big Billion Days (BBD) sale will begin. Smaller e-commerce websites such as Snapdeal, Paytm Mall, Shopclues, Myntra, and Club Factory will also host their festive season sales during the week.
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These events are crucial for retailers—both online and offline—in India because, as per some estimates, Indians make nearly 60% of all their electronics, consumer goods, and apparel purchases during the three-month festive season beginning in September.
No surprise then that e-commerce companies have been working overtime to pull it all off. Over the recent months, these companies have made heavy investments into making sure they have a wide assortment of products, offer unmatched discounts, one- or two-day deliveries, and hassle-free payments methods.
This year, there is also a big focus on “Bharat”—tier 2 and 3 cities in India where e-commerce penetration is still low. Here’s a look at what the e-commerce giants have up their sleeves:
This Diwali, Amazon and Flipkart are not selling to India but to Bharat, or small-town India.
“We have deployed up to 90% of our resources towards solving for Bharat,” Kalyan Krishnamurthy, CEO of Flipkart Group said in a statement. Manish Tiwary, vice-president for category management for Amazon India said, “the Great Indian Festival sale is important for us to bring the next 100 million customers online, many of them from tier-3 or even tier-4 towns.”
The urgency to tap India’s small town is so high that Amazon and Flipkart have spent a lot of money to ensure they suit the needs of potential shoppers in the areas. For instance, both Amazon and Flipkart have launched a Hindi interface for their websites and apps.
The hope of getting their next wave of new shoppers from small cities in India is backed by the increasing internet penetration, affordable data tariffs, and better access to smartphones in the areas. “The easy access to social media and online content has fuelled the desire among small-town consumer to access the same lifestyle and brands, which is accessible to their metro counterparts,” said Ashwini Sirsikar, country service line leader at Ipsos qualitative research, a UK-based market research firm.
Assuming that the trend continues, about 70% of e-tailing gross merchandise volume (GMV) will come from tier-2 and rural areas by 2023, up from 40% today, according to Redseer, a Bengaluru-based management consultancy firm.
While all the planning and groundwork seems to be in place, meeting customers’ expectation will be a crucial factor for e-commerce companies, according to experts. ”A holistic purchase journey right from discovery to repeat purchase becomes critical for retailers during the festive season,” said Amit Sharma, founder and CEO at Narvar, a customer experience platform that offers marketplaces retail solutions. “Shoppers’ expectations, which peak during festive sales period—timely delivery, easy returns, and a seamless experience become all the more important.”
Even small elements, such as glitches at the time of making payments or shoddy packaging at the time of delivery can be a deal-breaker. “For these business strategies to work effectively and efficiently, it’s very important that the payment gateway is well managed,” said Shankar Kotuli, founder of Paisa Wapas.com, an online cashback loyalty platform.
The success rate for payment-gateway transactions is around 80% on average; during festive sales it may fall to 65%, which could reduce the final conversion rate, said Paisa Wapas.com. “Hence, customers’ convenience during monetary exchanges is an essential feature that can help win credibility, get a player more customers and sales,” added Kotuli.
Offering a seamless experience becomes even more essential as e-commerce companies eye first-time users this year, who may not be very comfortable with digital payments.
