amazon sale: Ecommerce off to a flying start, handset, electronic sales up 40-90% but prices volatile this time
With demand likely to rise further during Navratri, several brands and sellers have reduced discounts for the rest of the sale period as supplies remain a challenge, multiple industry executives said. Prices of several products across fast-selling categories such as smartphone, television, appliance and fashion are up 5-18% compared with the first two-three days of the sale.
Pay Hikes Boost Demand
The sales on both the online marketplaces started on October 3.
Executives said price volatility of this kind during an online sale period is rare. Demand is buoyant as consumers whose spending had been curbed by the pandemic are now buying new gadgets and clothes, beautifying their homes, and upgrading their lifestyles amid renewed confidence because of salary hikes and restorations across most organisations. Supplies, on the other hand, have been constrained for the last two-three months due to scarcity in availability of components like semiconductor chips and shortage of cargo containers.
Upbeat Consumer Sentiment
A Flipkart spokesperson said the festive sales have started on a positive note with early trends reflecting an upbeat consumer sentiment across the country. The person said categories like mobiles, electronics, large appliances, lifestyle, general merchandise and home witnessed the highest demand. Flipkart’s grocery category has seen first-time customers from 200 new cities.
“Ecommerce is clearly gaining increasing acceptance among the masses, and it is evident that user-friendly tech and financial constructs are helping to drive its adoption,” the Flipkart spokesperson said.
Amazon India did not respond to ET’s queries.
As per estimates by market trackers, Apple sold over 300,000 units of iPhones during the first three days of the sale, resulting in ₹2,000-3,000 increase in per unit price. Apple did not respond to the emailed query.
Xiaomi India managing director Manu Kumar Jain took to Twitter to say that his company has already sold 2 million smartphones with a ten-fold growth in the ₹20,000-plus segment. The company has also sold 100,000 television sets in this three-day period. Realme India CEO Madhav Sheth, too, tweeted that the company has sold one million plus smartphones.
While the figures in the tweets refer to both online and offline channels, industry executives said most of these sales have taken place on Flipkart and Amazon and their online brand stores. Xiaomi has also increased the price of some of its products. The company did not respond to ET’s query.
“Ecommerce product prices have been volatile this festive sales. Demand has been exceptionally good and supply situation remains stressed,” said Tarun Pathak, research director at smartphone tracker Counterpoint Technology Market Research.
Avneet Singh Marwah, chief executive of SPPL, the company that sells Thomson, Kodak and Blaupunkt TVs online, said brands have increased prices after the first two-three days of the sales since no one expected such high demand during shraadh period and supplies remain constrained. “Discounts could further come down and soon models may start getting sold out,” he said, adding that business was already up by 80% over last year.