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Festivity in the air turns cash cow for the E-commerce giants   

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Festive season sales
Festive season. Photo by Humphrey Muleba | Unsplash.com

The E-commerce giants, Amazon and Flipkart, smashingly broke all records with $3.5 billion sales in barely 4 days of the festive season. Electronics heavily flooded the shopping cart, including new launches of products. Further, the pandemic-mandated work-from-home (WFH) implication, led to a 1.4x increase in laptops’ sales, televisions, and mobile phones. 

Metrics of market

This sale surge is further going to witness an increase of 35% in parallel comparison to sales last year. While IT equipment and gadgets continued to secure high sales, furniture and fashion department also attained an above-average response.

Major sales offered hefty discounts to clear the pile of inventories during the lockdown.

RedSeer Consulting reported that consumer companies like ITC Limited, HUL, Colgate, and Palmolive would mark about 40% of their yearly sales through the festive season.

Analysts and market researchers claimed that “small-town buyers among other existing buyers also sprouted the festive sales.”

This buoyancy in the E-commerce market is estimated to accumulate to $196 billion in sales as predicted by consultants. 

Cash-rich Discounts and partnerships

With enticing discounts and low prices, the local retailers are complaining of predatory pricing. The 10% cashback equivalent of the buying price and EMI options are eroding other market leaders. Hence, local retailers across the globe are calling for rationalized discounts to avoid manipulation of price.

Post-pandemic businesses are going for collaborations and partnerships to create a win-win situation for both parties. During the recent festive season, Flipkart has strategically partnered with the local artisans to penetrate deeper into the geographies.

To crown themselves with billion sales, brands like Maybelline New York and Pepsi also took the route of partnerships. 

Joining Amazon and Flipkart, Walmart has announced holiday sales in November with digital deals and discounts ahead. The frenzy of “Big Save” and “Deal Days” is a way for small retailers to ensure their businesses’ web presence. 

Holiday offers for Thanksgiving and Christmas have also led to an increase in retail spending by customers.

An avid learner having infatuation for numbers and finance. Also, an individual with unfiltered opinions who likes to mix the metrics of both professionalism and creativity.

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