As eCommerce majors unleash online festive sales, will the problem of plenty hit revenues?

With more than 33% of the global population engaging in online shopping, eCommerce has become a massive industry valued at approximately $6 trillion, as per a report by Sellers Commerce. Projections indicate that this figure is expected to surge to $8 trillion by 2027. According to the report, eCommerce sales are expected to surpass $6.3 trillion in 2024. Around 2.71 billion people worldwide are purchasing products through dedicated eCommerce platforms and social media channels, reflecting the rapid growth and widespread adoption of digital shopping solutions. As online shopping continues to evolve, its influence on global retail is becoming increasingly significant, driven by convenience and accessibility across various platforms.

This represents a 2.7% increase compared to the previous year. The number of people shopping online is expected to rise further, reaching 2.77 billion by 2025, driven by factors such as increased internet access and the growing convenience of eCommerce. China leads the global online shopping trend with 915.1 million online buyers, while the United States follows with 270.11 million online shoppers in 2024.

India’s eCommerce industry has witnessed exponential growth, transforming into one of the largest and most dynamic markets globally. With a robust internet infrastructure and increasing smartphone penetration, online retail in India is projected to reach $200 billion by 2026, according to Grant Thornton. Leading platforms such as Amazon, Flipkart, Myntra, Meesho, and more, have played pivotal roles in shaping the digital shopping landscape, offering consumers access to a wide range of products, competitive pricing, and the convenience of home delivery. Government initiatives like Digital India and a tech-savvy younger population have further propelled the growth of eCommerce in the country, making it a key driver of economic growth.

The festive season, particularly the Dussehra-Durga Puja-Diwali period, is a crucial one for eCommerce platforms in India, with sales peaking during this time.

According to Meesho’s Ecommerce Festive Forecast 2024, there is a notable shift in festive spending, with more than 60% of the shoppers planning to increase their online shopping budgets. An Ipsos study reveals that a significant 89% of shoppers are excited for the festivities this year, with 71% planning to shop online this season. Amazon continues to dominate the online shopping landscape, with 73% of respondents considering it their most trusted platform for festive purchases, as per the Ipsos report. As per the Meesho report, eCommerce adoption in Tier 2+ is set to grow as more than 60% of mass consumers increase online shopping budgets this festive season.

Ecommerce platforms are set to unleash their festive bonanza sales days, with Amazon’s ‘Great Indian Festival’ and Flipkart’s ‘Big Billion Days’ becoming annual festive online buying occasions in India’s shopping calendar. Consumers are spoilt for choice with a plethora of massive discounts, no-cost EMI options, and special bank tie-ups. Categories like mobile phones, electronics, apparel, beauty & personal care, fashion, home decor see a sharp spike in online shopping. These strategic sales events are crucial for eCommerce giants, as they not only boost revenues, but also strengthen customer loyalty in one of the world’s most lucrative online markets.

Adgully takes a look at some of the mega festive season initiatives lined up eCommerce platforms this year.

Flipkart

The 2024 Flipkart Big Billion Days sale is set to commence on September 27, but Flipkart Plus members will receive early access, with their sale starting a day earlier on September 26. Flipkart has teamed up with HDFC Bank as its official partner for the event. As a result, HDFC Bank cardholders can enjoy an extra 10% discount through special bank offers or price reductions.

Flipkart has made its foray into the quick commerce space with the launch of Flipkart Minutes in Gurugram and in certain areas of NCR. This follows its launch in Bengaluru, as per reports.Electronics, groceries and others can be ordered through Flipkart Minutes with delivery time ranging between 8-16 minutes. Though no such official statement has been issued, the service is available in Golf Course Road, Unitech Cyber Park and in parts of Mumbai.

Flipkart Big Billion Days, Coming Soon!

Amazon

The 2024 Amazon Great Indian Festival sale is scheduled to start in India on September 27, coinciding with the Flipkart Big Billion Days sale. Prime members, however, will receive early access beginning on September 26. Amazon has revealed that customers using SBI Bank cards will benefit from a 10% instant discount. The sale will feature offers and discounts across various categories, including laptops, smartphones, tablets, wearables, home appliances, kitchen appliances, fashion, beauty, and more.

According to a report done by Ipsos, The wide product selection (75%) and attractive value propositions (72%) offered by Amazon are key reasons for its popularity. The study also shows that nearly half of the respondents plan to increase their spending compared to last year, with 55% in metro areas and 43% in Tier-2 cities, indicating they will spend more on online shopping this festive season.

Amazon Great Indian Festival | Coming Soon | No Cost EMI | Hindi

Meesho

In recent years, Meesho has emerged as one India’s premier eCommerce platforms. Meesho has unveiled its highly anticipated ‘Mega Blockbuster Sale 2024’ campaign, celebrating the year’s best deals and prices. As the go-to destination for festive shopping, Meesho’s latest campaign highlights its extensive range of products, from ethnic fashion and jewelry to electronics and home essentials.

The Meesho Mega Blockbuster Sale 2024 will start on September 27, offering discounts of up to 80% on various categories such as fashion, electronics, home decor, and more. Shoppers can look forward to significant savings across a wide range of products during this highly anticipated event.

Meesho Mall | Brands at up to 80% off | #MeeshoMegaBlockbusterSale | 27th September se!

Shopsy

With its super low prices and promise of high quality, Shopsy, Flipkart’s budget-friendly e-commerce platform, has been able to woo online shoppers, especially in small towns. The Grand Shopsy Mela 2024 was a major festive shopping event held by Shopsy from September 1 to September 8, 2024. The sale aimed to provide shoppers with high-quality products at affordable prices, featuring a wide range of categories, including fashion, beauty, electronics, and home appliances. The Mela showcased over 50 lakh products priced under ₹199, catering especially to customers in Tier 2 cities and beyond. This virtual event was a vibrant celebration modeled after traditional Indian melas, blending festive shopping with a unique online experience.

Bharat's BIGGEST Mela | Grand Shopsy Mela | LIVE NOW | 1st - 8th September

Myntra

The Myntra Big Fashion Festival 2024 will officially start for all users on September 26, offering a wide range of discounts across fashion, beauty, and lifestyle categories. However, Myntra Insider members will receive 1-day early access to the sale, starting on September 25. This sale features exclusive deals from top brands and additional benefits like free shipping, special discounts, and more for Insiders.

Are Ranbir & Karan cloning? ???

The problem of plenty?

With the mega sale periods by the eCommerce platforms commencing around the same time, the competition is fierce. How will this impact online shoppers? Will it boil down to who offers the lowest discounts? Moreover, will the brands and online sellers lose out in the race to offer cutthroat prices?

It’s a wait and watch till the super sale season dust settles down.

Impact on Small Retailers

The online festive sales season has come at a time when the Competition Commission of India (CCI) has sharpened its focus on Amazon, Flipkart and other eCommerce platforms for breaching local competition laws by favouring select sellers on their platforms. Initiated in 2020, the investigation reveals that both Amazon and Flipkart have been promoting certain sellers through business arrangements and prioritizing their listings in search results, thus disadvantageous to other sellers.

The investigation, led by Director General Ansuman Pattnaik, has unearthed evidence that Amazon and Flipkart's deep discounting practices—enabled through preferred sellers—are distorting market competition. Sources indicate that these anti-competitive practices have been observed across various product categories.

The findings are detailed in two extensive reports – 1,027 pages for Amazon and 1,696 pages for Flipkart – both dated August 9. The reports indicate that the e-commerce giants established a system where preferred sellers were given higher visibility, which reportedly pushed other sellers lower in search results.

Following this revelation, Amazon and Flipkart will have the opportunity to review the reports and submit any objections before the CCI decides on potential penalties. The investigation was prompted by a complaint from the Delhi Vyapar Mahasangh, an organization representing traditional brick-and-mortar retailers. This scrutiny reflects ongoing criticism of the business practices of major e-commerce platforms in India, particularly from smaller retail competitors.

CCI is expected to issue its final orders by November 2024 regarding its extensive investigation into alleged anti-competitive practices by e-commerce giants Amazon and Flipkart.

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