Amazon is losing relevance in India, says Flipkart

Joanna Estrada
October 12, 2018

The "Big Billion Days" sale will go on until October 14, while Amazon's rival sale dubbed the "Great Indian Festival" will finish on October 15, according to its website.

Indian online retailer Flipkart, owned by Walmart Inc, expects bumper sales during the annual festive season that just kicked off, as it boasts that USA rival Amazon Inc is losing relevance in India. The Xiaomi products include smartphones, Mi LED TVs, Mi Band 3, Mi Power Banks, Mi Earphones, Mi Routers, and other Mi Ecosystem and accessory products that were sold across the Amazon and Flipkart sales, as well as, Mi.com's Mi Super Sale.

Amazon claimed that three out of every four smartphones sold in the country were on its online marketplace. Amazon's Great Indian Festival started on 10 October and ends on 15 October. It said the sales during the first 26 hours had already matched that of its five-day sale a year ago. If Flipkart's claims are accurate, it would indicate that the company has already generated ₹ 5,000-5,500 crore of sales during the first two days. According to RedSeer Consulting, e-commerce companies in India have achieved United States dollars 1.5 billion in the first 2.5 days of the festive sale - led by sale of 4.6 million units of smartphones (translating into USD 800 million), large appliances (USD 170 million) and fashion (USD 120 million).

But with a business point of view, it would be interesting to see how the reality of this race pans out between Amazon and Flipkart, and how much the claims made by the native etailer turn out to be true and fruitful for the company and the industry in the longer run. According to the latest report from RedSeer, top e-commerce firms-including Flipkart and Amazon-generated almost $1.5 billion of GMV during the first two days of the sale, matching the $1.5 billion of GMV that was generated during the entirety of last year's five-day sale.

It added that the industry is on track to reach the United States dollars 3 billion-mark - twice that of previous year - by the end of the five-day festive period.

Most of the sales have largely been driven by the smartphone business, which accounts for over 50% of all e-commerce sales in India.

Flipkart CEO Kalyan Krishnamurthy had indicated that the company is on a strong growth trajectory and could possibly achieve all its numbers "by the fourth day itself" as it is a "clear leader in smartphones, fashion and home products". To recall, last year, Xiaomi had claimed to have sold 1 million smartphones during the first two days of festive sale between September 20 and 22 September, across the same platforms.

E-commerce websites Flipkart and Amazon are in the middle of their biggest annual sales and it is pouring offers on a plethora of products.

"In the first 36 hours of the sale, the shipped volumes have more than doubled and the trend continues to grow rapidly", Snapdeal said adding that consumers shopped across categories like electronics, home decor and fashion. This year we are going the whole hog, across all categories. "We've sold 500 perfumes per minute throughout the sale so far", said Smrithi Ravichandran, senior director at Flipkart.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER