Skip to content
Search

Latest Stories

Sales galore as e-commerce giants woo reluctant Indian festive shoppers

E-COMMERCE giants Amazon and Walmart-backed Flipkart kicked off a crucial battle for shoppers on Sunday (29) ahead of India's massive festive season as retailers search for a much-needed boost to sales amid a slowing economy.

October and November when much of India's 1.3 billion population celebrates several major Hindu festivals and consumers traditionally go on spending sprees are critical for retailers, with some raking in almost half of their annual sales during the period.


But sales this year have been hit by falling consumer demand as a liquidity crunch crimps personal loans and unemployment soars to its highest level since the 1970s.

"Things are difficult," Rakesh Kumar Yadav of the Federation of Sadar Bazar Traders Association, which represents some 40,000 wholesale traders in the capital New Delhi said.

Even aggressive pitches by Amazon and Flipkart, which have heavily invested in India's budding e-commerce market, did not stop online consumer spending from slipping by around 20 per cent in the six months to June compared to last year, the Economic Times reported citing market research firm Kantar.

"The festival season is around the corner... and a lot of these corporates are coming up with various schemes to prop up demand and woo the consumers," India Ratings principal economist Sunil Sinha said.

"But my own sense is that despite all the efforts, overall consumer sentiment is so down-and-out that we won't see similar kinds of spending that we have seen in the past."

With their deep pockets, Amazon and Flipkart are taking on India's local family-run stores, known as "kirana" shops, that have dominated streets for decades.

Less than five per cent of India's $600 billion retail market is online, but the sector is expected to expand to 8-9 per cent of the market by 2022 thanks to smartphone adoption and a rising middle class, according to RBC Capital Markets.

Amazon which recently opened a massive campus for 15,000 employees in the southern city of Hyderabad has taken out full-page newspaper ads to promote its "Big Indian Festival" sales and is offering discounts of up to 90 per cent.

Flipkart has Indian mega-star cricket Virat Kohli as the face of their "Big Billion Days" sales campaign and has slashed prices on fashion items and home appliances.

The two platforms which have almost 75 per cent market share of the e-commerce market hope to attract cash-strapped shoppers with financing options and have hired hundreds of thousands of temporary staff to cope with expected increased demand.

Their six-day festive sales are estimated to reach $3.8bn, up from $2.9bn last year, despite the wider economic slowdown, Forrester Research senior forecast analyst Satish Meena said.

Bricks-and-mortar retailers are also ramping up their visibility to keep pace with the online behemoths.

"These are difficult times and consumer sentiment has been tilted towards the negative for some time now," J. Suresh, the managing director of Arvind Lifestyle Brands, told the Economic Times about why the 1,300-store owner was increasing ad spending by up to 20 per cent this year.

Meanwhile, economists said a raft of recent government measures to revive the flagging economy, including a corporate tax cut, would improve sentiment in coming years.

"It's a good beginning... The likelihood is that we've almost reached the bottom and if the government continues to do its bit and corporates remain upbeat because of these announcements, things will start looking up," Sinha said.

(AFP)

More For You

ronnie screwvala

Ronnie Screwvala’s rise to billionaire status is an inspiring story of vision

Getty

Ronnie Screwvala: From toothbrush seller to Bollywood's lone billionaire

The 2025 edition of the Forbes Billionaire List was released on Wednesday morning, showcasing the world's wealthiest individuals. The list features 3,028 billionaires globally, including 205 from India. Among these is Bollywood's only billionaire, Ronnie Screwvala, a media mogul whose journey from manufacturing toothbrushes to becoming a leading entrepreneur is nothing short of remarkable. With a net worth of $1.5 billion, Screwvala has surpassed the combined fortunes of Bollywood’s biggest stars, including Shah Rukh Khan, Salman Khan, and Aamir Khan.

Bollywood’s wealthiest man

Ronnie Screwvala stands as the richest person from the Hindi film industry, with a fortune exceeding that of its biggest icons. According to Forbes, his net worth of $1.5 billion surpasses the combined wealth of Shah Rukh Khan ($770 million), Salman Khan ($390 million), and Aamir Khan ($220 million), whose total stands at $1.38 billion. Additionally, he eclipses other notable figures such as Gulshan Kumar (approximately $900 million) and Aditya Chopra ($800 million). His financial success is a testament to his entrepreneurial acumen and strategic investments in both entertainment and education sectors.

Keep ReadingShow less
Donald Trump

Trump announced a series of tariff increases targeting various nations, including key US allies such as the UK and the European Union.

Getty Images

Trump’s tariffs hit global markets, Starmer warns of 'economic impact'

The UK and other global economies reacted on Thursday to US president Donald Trump's newly imposed tariffs, with prime minister Keir Starmer warning of an “economic impact” from the 10 per cent levy on British exports.

Trump announced a series of tariff increases targeting various nations, including key US allies such as the UK and the European Union.

Keep ReadingShow less
Airbus bets on Indian supply
base to scale up production

Guillaume Faury

Airbus bets on Indian supply base to scale up production

AIRCRAFT maker Airbus plans to significantly ramp up its annual sourcing of components and services from India to reach $2 billion (£1.54bn) by 2030, its CEO Guillaume Faury has said.

Describing India as one of the most important markets for Airbus in terms of growth, Faury said the challenge for the aircraft maker is to support the speed of the growth of the aviation industry in India.

Keep ReadingShow less
nintendo switch 2

The new console aims to build upon the success of its predecessor while introducing fresh innovations

Getty

Nintendo unveils Switch 2 - A new era for hybrid gaming begins

After months of speculation and cryptic teaser campaigns, Nintendo has officially announced the highly anticipated successor to its bestselling hybrid console. The Nintendo Switch 2 is set to launch on 5 June, with a price tag of £395.99 for the base package and £429.99 for a bundle including Mario Kart World. With a range of hardware improvements, redesigned controllers, and an exciting lineup of games, the new console aims to build upon the success of its predecessor while introducing fresh innovations.

A Bigger, Sharper Display and 4K Support

One of the most noticeable upgrades in the Nintendo Switch 2 is its display. The console now features a larger 7.9-inch screen, boasting twice the pixel count of the original Switch and supporting full 1080p resolution. Additionally, the display is capable of up to 120 frames per second, ensuring smoother animations, while high dynamic range (HDR) enhances colour contrast for a richer visual experience. Despite these improvements, the Switch 2 maintains the same thickness as the original model, preserving its signature portable form factor.

Keep ReadingShow less
‘All options on the table’ as Britain
prepares for likelihood of US tariffs

Sir Keir Starmer with Jonathan Reynolds

‘All options on the table’ as Britain prepares for likelihood of US tariffs

BRITAIN is likely to be hit by US tariffs despite making “rapid progress” over a trade deal with Washington, prime minister Sir Keir Starmer said on Tuesday (1).

He spoke as US trading partners around the world braced for an expected fresh raft of tariffs from president Donald Trump, in addition to levies already imposed on steel and those set to take effect this week on cars.

Keep ReadingShow less