Festival Sale is one of the most important times when e-commerce companies are selling their best deals and trying to take advantage of them during this period. Experts say that most e-commerce companies generate annual revenue from festive sales. E-commerce marketers usually make up to three sales up to the Diwali festival. Of these sales, the first is usually the largest and typically accounts for more than 60% of festive sales. Amazon hosts it’s “Great Indian Festival”, and Flipkart hosts it’s “Big Billion Day Sale” every year during the holiday season as India's first wave of festive sale. In recent years, massive online customization has been driven by high online e-commerce sales and increasing new shopping patterns due to changes in customer demographics including video and WhatsApp based shopping during the festive season.
The two brands have very different advertising styles before the festive sale. Flipkart targets several celebrities and influencers and relies heavily on digital technology, while Amazon takes the traditional route and focuses more on television and outdoors. Flipkart prefers to garner attention through celebrities by creating a buzz. On the other hand, Amazon ran multiple television commercials with a ‘Budget won’t hold back’ theme, instead of big faces. Flipkart tries to expand its base by reaching more potential customers with the concept of sale days, and Amazon claims to win by offering better deals. While Amazon offers a simpler budget distribution over the year, including non-festive periods, Flipkart advertises seasonally. Amazon is committed to using all of your marketing budgets to sweeten our deals and get the best possible price. Amazon attributed its incredible performance to the platform's "availability of selection, convenience, and affordability", while Flipkart says it helped attract 50% more new customers through its access and effort to Hindi videos and language content during the Big Billion Day’s sale.
Flipkart’s glory run was “enabled by strong value prices, high EMIs adoption and diverse selection across categories, all marketed aggressively to reach customers widely,” RedSeer said.
Flipkart is building new strategic partnerships with leading brands in all categories to offer a wide range of products and deals to enable consumers from Metro to Tier IV cities to participate in Big Billion Days sales. Myntra’s Elite and Icon users get exclusive early access to the Big Fashion Festival. Myntra is working with more brands nationwide than ever to give its customers a local taste for fashion. In addition to ethnic clothing, Fashion Major also offers items from many other categories such as children's clothing, women's clothing, home furnishings, watches and suits, jewellery, men's clothing, cosmetics, and personal care, shoes, and gifts. As always, Amazon Prime members get their first crack in sales. To increase sales for apparel companies, Amazon Fashion offers up to 80% off all apparel accessories with a free EMI and 30-day return policy.
"Snapdeal's continued growth and leadership in Bharat e-commerce is proof that value-priced selection is an evergreen attraction for shoppers across India"- Kunal Bahl, CEO & Co-founder, Snapdeal said.
Amazon maintains a consensus among all age groups, including women, millennials, and all customers, especially during festive sales. With a host of new fashion brands and exciting offers for current and first-time customers, it continues to provide an unmatched shopping experience. A separate technical group is dedicated to fashion and is working to create digital features and enhancements to solve specific problems for this category, such as size. Besides, they have introduced special packaging to help customers get products faster and smoother, and provide better service to customers.
On the other hand, Myntra’s End of Reason Sale allows online shoppers to update their wardrobes and go out in style with over 5000 brands to choose from. Over 45+ celebrities and influencers have been recruited to generate leads using Myntra Studio and social media platforms. Sales include goods, accessories, beauty products, and home furnishings of international and national brands. Flipkart, owned by Walmart, announced a partnership with Max Fashion last September to help large e-commerce companies offer their customers an expanded portfolio of clothing and accessories ahead of their vacation. Flipkart offers more than 13,000 new styles from Max Fashion, a brand under the Dubai Landmark Group banner.While Amazon has the means to achieve its goals, Flipkart has a large product portfolio full of national and international brands and private labels.
Consumer surveys show that buying something ready to pay or a price below the standard price is satisfying, and people say that Black Friday is trending because of marketing tactics. Sales occur throughout the year and prices change over time. Time-limited offers to increase the “anticipatory regret”, also known as “fear of missing out” or FOMO, motivating people to buy something they cannot otherwise do. Consumers tend to succumb to limited time supply because they don't feel like a game or try to find better deals elsewhere. There is a phenomenon called "shopping momentum" that occurs when the purchase provides a psychological stimulus to buy an unrelated second item. Therefore, shopping leads to more purchases.
The ‘99’ endings in price are based on the theory that the first digit in the price reading from left to right is the most sympathetic. This is why shoppers are more likely to buy a product for ₹799 than the same item for ₹800. Products starting at ‘7’ seems like a better deal than products starting at ‘8’. ‘99’ itself shows that a product is on sale according to the article "Mind Your Pricing Cues" published in the September 2003 Harvard Business Review. Price-conscious consumers are used to believing they get a lot when they purchase something for a price that ends at ‘99’, even if the choice is minimal. For example, J. Crew and Ralph Lauren's clothing stores value regular items in full dollars and show 99 cents on discounted items. These retailers intentionally do not list at 99 cents so that consumers do not associate their regular products with cheap offers. However, it is a principle that stores that want to create a basic product image close all tags of their products with a 99-cent discount on the same price.
A good deal is hard to resist, and just about impossible to pass up when it’s for something you want. While most businesses harness the power of deals and discounts to reel in more clients, there are many different kinds of discounts, and they are all effective with different groups of people.
- Avi Chowrasia
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