Flipkart may pip Amazon with higher smartphones, apparel sale in online festive sale

Flipkart's six day long Big Billions Days sales kicked off Friday while Amazon also unveiled its month-long Great India Festive Season sales exclusively for Prime members.
Walmart-owned Flipkart (R) and Amazon
Walmart-owned Flipkart (R) and Amazon

BENGALURU: Smartphones and fashion are likely to account for 50 per cent of the festive season sales which kicked off today with Flipkart maintaining the lead over the rival Amazon, a report by research firm, Forrester indicated.

Flipkart's six day long Big Billions Days sales kicked off Friday while Amazon also unveiled its month-long Great India Festive Season sales exclusively for Prime members.

Interestingly, however, the report has predicted that Flipkart may have an advantage over Amazon when it comes to mid-priced smartphones (in the range of Rs 10,000-15,000). "As was seen last year, Flipkart holds a strong forte in several segments like smartphones and apparels compared to Amazon. For instance, Flipkart’s exclusive tie-up with Xiaomi may pay dividends because although they will sell small ticket-size products, the volumes are higher. In contrast, Amazon’s partnership with brands like One-Plus will not attract as many consumers," Sanjeev Kumar, an analyst with US-based research firm, Forrester told TNIE.

He added that smartphones and consumer electronics sales will see a growth of 26 per cent and 43 per cent, respectively, this year whereas grocery will emerge as the most festive-themed products within the category that have moved online.

The report also stated that the fashion segment will see a 9 per cent year-on-year decline in Gross Merchandise Value (GMV) on e-commerce platforms. GMV refers to the volume of goods sold through e-commerce platforms. 

Kumar further said the total GMV across e-commerce platforms is expected to touch $6.5 billion this year compared to $4.8 billion last year, an increase of 34 per cent led by rising number of online shoppers this year. Overall, however, the per capita expenditure on e-commerce platforms is expected to shrink by 13-14 per cent.

  • USD 6.5 billion: Estimated online festive sales

  • 34 per cent: Total share of smartphones

  • 6 per cent: Share of grocery, new entrant

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