After a prosperous festival season for numerous e-commerce firms, companies are now eager to capitalize on the growing interest of Indian consumers in retail therapy.
Myntra and Ajio, prominent fashion platforms, have introduced the ‘End Of Reason Sale’ and ‘Big Bold Sale,’ presenting discounted prices on clothing and various fashion accessories. In India, the initial week of December marks the conclusion of the festival season, typically commencing in October and concluding by mid-November.
Nevertheless, businesses persist in providing products at reduced prices through sales, with some choosing to do so during Black Friday and Cyber Monday.
These sales serve as a crucial gauge of consumption health, constituting approximately 60 percent of India’s gross domestic product. Companies are also optimistic about capitalizing on the onset of the wedding season in many parts of India to sustain the momentum in consumption.
The Confederation of All India Traders projects that the total sales from November 23 to December 15 will amount to approximately INR 4.25 lakh crore ($51 billion).
Myntra anticipates approximately one million new customers to participate in the 19th edition of EORS. Meanwhile, Ajio’s Big Bold Sale, commencing on December 7, witnessed a 40 percent surge in orders during the early access phase compared to regular business.
Festival season was termed a success by many e-commerce players. “A very large middle class is expanding as we speak. We are seeing that increasing disposable incomes are leading to customers showing very strong preference to premiumise. This is happening in multiple categories,” said Saurabh Srivastava, vice president, Amazon India in October, ahead of the shopping season.
Amazon reported that 80 percent of its customer base hailed from tier 2-3 cities, asserting that this marked the largest ‘Great Indian Festival’ in the company’s history.
“The festive season is expected to be followed by a robust wedding period, both of which combined should support near-term growth,” Teresa John, an economist at Nirmal Bang Institutional Equities Pvt, had said late October. “Easy availability of credit and expectations of cooling inflation should also aid a gradual recovery in discretionary spending particularly in the mass market.”
