Amazon-Flipkart sops war in festive sales fizzles out, shows data

Festival Online Retails wars

Discounts may have been scaled down as the e-commerce market matures and the government looks out for alleged malpractices.

Radhika Subramanium made umpteen trips to the shiny black Bosch mixer-grinder on her phone in the last few weeks. She put it in her shopping cart and waited for the festive season sale to begin, hoping to get a good deal. At the end of the day, who doesn’t want to save a few extra bucks?

But, on October 3, the big day when e-commerce giants Amazon and Flipkart locked horns and launched The Great Indian Festival and Big Billion Days, Subramaniam was sorely disappointed. Her cart barely showed any discount. She bought the appliance anyway because it was needed, but her excitement was gone.

It was largely the same story for Vaibhav Jaiswal. His Boat headphones didn’t even fetch a Rs 200 discount.

Revati Krishna, in fact, checked out with zero discount on the sit-and-bounce ball she had picked up for her nephew.

Subramanium, Jaiswal and Krishna are among hundreds of Indians who realised that e-commerce sales no longer offer the lucrative discounts they used to, except for select products such as mobile phones.

On average, 30 percent of the products sold across the electronics category which houses products like refrigerators, air-conditioners and laptops on Amazon and Flipkart had no discount during their week-long festive sale season, according to a study by a data analytics company.

Higher prices

Interestingly, 8-11 percent of the products across categories such as washing machines, microwave ovens and laptops even showed higher prices during the sale across the two platforms.

The price comparisons were made with rates displayed on October 1, the last business-as-usual day before the sale started.

The data was compiled by Bengaluru-based digital commerce analytics platform DataWeave, which counts Japanese ad-tech firm FreakOut Group and domestic venture capital firm Blume Ventures among its investors. The data was shared exclusively with Moneycontrol.

The discounts were lean even on lower-priced products. Amazon dangled a 6.4 percent discount on air-conditioners priced at Rs 33,500-34,000 during the sale, while Flipkart offered barely a 5 percent discount, according to the data.

This is a far cry from discounts in the 60-70 percent range that used to be advertised across electronics and appliances categories on online marketplaces.

For this analysis, DataWeave trawled the first five pages of the electronics category, which houses products, including air-conditioners, cameras, headphones, laptops, microwave ovens, refrigerators, smart televisions, smartwatches, and washing machines. The firm scanned 1,184 products.

Gone are the days when discounts were offered for habit-forming. According to experts, with the markets maturing, companies no longer fancy hoarding deal hunters.

“As people have got used to buying online, the companies have decided to focus on convenience rather than price,” said Harish HV, managing partner at ECube Investment Advisors. “You won’t even find a significant difference between the price of a product across the two marketplaces Amazon and Flipkart, which have a clear duopoly. It will go on like this unless a big new entrant starts disrupting prices again.”

According to Harish Bijoor, … Continue reading the article here
This article was originally published on Moneycontrol on October 27, 2021


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