While most businesses are still struggling to cope up with the sudden economic downturn caused by the deadly outbreak of COVID-19, the two biggest e-commerce marketplaces in India Amazon and the Walmart-baked Flipkart have already started to plan their events post the lockdown in May. What’s in store for the consumers? Let’s find out!
It has been discovered that both Amazon and Flipkart are now concentrating on conducting mega online sale events in India. These events will be conducted in the month of May.
The two e-commerce behemoths in India have reportedly asked brands to stock up for these events as they are expecting the demand for non-essential categories to revive to a small extent post the removal of restrictions.
Industry executives have said that the recent allowance given to e-commerce sites by Odisha to deliver products during the second phase of lockdown makes them hopeful that other states will follow suit as well.
Online Mega Sales: An Attempt To Recover Losses Post Lockdown?
It has been estimated that the entire Indian e-commerce industry in India, Amazon and Flipkart included, stands to lose a whopping $1 billion in sales due to the lockdown.
Even though these e-commerce giants are observing a surge in the demand for online grocery orders during this time, it only makes up for 10% of their total sales.
One of the major hits to these giants was the shutting down of the sale of electronics – the category which contributes a big chunk of revenue share to both Amazon and Flipkart. Therefore, it makes perfect sense for both Amazon India and Flipkart for wanting to capitalise on the very first window of opportunity available post the lockdown.
Also, several brands which are solely reliant on online channels for sales have been hurting along with these e-commerce giants as well. Therefore these mega online sale events will work as the immediate boost they need to jumpstart their own businesses as well.
The Government along with many brands have been provided with several inputs by Amazon and Flipkart that consumers are looking forward to buying some non-essential items such as smartphone, laptop, tablet, AC, refrigerator, washing machine, fan, printer, webcam, vacuum cleaner, television, and other household products.
Therefore, it seems like based on these same inputs, these two e-commerce players are betting big on expecting a surge in the demand for non-essentials in their online sale events once the lockdown ends.
The eCommerce market in India has been growing at a phenomenal pace. In 2017, the Indian eCommerce market was estimated at just $38.5 billion. However, it’s expected to reach $120 billion in 2020. As the number of online shoppers in India will also increase to 220 million by 2025, the eCommerce market in India has been estimated a whopping $200 billion business by 2026.
The Chief Executive of Smartphone Maker Realme India, Madhav Sheth said that people may not see humongous discounts in the upcoming sales events. Besides, there would be limited stocks due to the disrupted supply chain during the lockdown.
Sheth also pointed out that as working from home and online education have become the hour of need, several consumers are now looking forward to purchasing devices such as smartphones, laptops, tablets, and other accessories.
The opening up of the non-essential services during the second phase of the lockdown has been suggested by the Department for Promotion of Industry and Internal Trade “to improve the economic activity and provide liquidity in the hands of the people”.
Now it remains to be seen to which extent will these pre-planned online sale events by Amazon India and Flipkart be successful in the month of May. Also, as of right now no comments have been received by either of the two companies regarding these events. We will keep you posted on all future developments.