As India gears up for the festive season, e-commerce giants are luring in customers with their annual sales.
The early festive sales, which kicked off before Navratri, have already seen a tremendous response from shoppers.
According to a report by the Economic Times, many companies have witnessed a remarkable surge in sales, with figures showing an increase of 25 to 30 percent compared to last year.
In response, companies are now contemplating reducing discounts to boost their profit margins, potentially impacting customers down the line.
Surge in Sales
As per the Hindu calendar, Pitru Paksha 2023 is ongoing, traditionally a time when people refrain from making new purchases.
However, e-commerce companies have successfully met their targets within just three days of the sale.
Several brands and e-commerce companies, especially in premium categories, have reported growth of 25 to 30 percent compared to the previous year.
Notably, Myntra, an e-commerce company, has experienced an impressive 100 percent growth in categories like beauty, personal care, and jewelry.
High Demand for Electronics
In addition to beauty and personal care products, electronic items are flying off the virtual shelves during this period.
Companies such as Samsung and Xiaomi are experiencing a surge in smartphone sales.
According to reports from the Economic Times, Flipkart alone has sold over 400,000 Apple iPhones during the sale.
‘s Revenue and Growth Head has observed that the sale frenzy targeting the festive season is not limited to major cities but has also spread to Tier 2 and 3 cities, with a remarkable 45 percent increase in orders on the first day of the sale.
Discounts on the Chopping Block
It’s worth noting that e-commerce giants Amazon and Flipkart commenced their festive season sales on October 8.
As sales continue to soar, many companies are considering reducing the discounts initially offered.
While some brands have been offering discounts of up to 80 percent during the sale, companies may now adjust prices upward by 5 to 7 percent in an effort to improve profit margins.
Shoppers should be prepared for potentially smaller discounts during this sale season.
E-commerce company Dunzo is closely monitoring the situation and will make decisions regarding discounts and sales based on market conditions.
