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

Primark-London-Getty

During his 15-year tenure, Marchant expanded Primark’s store network to more than 450 locations across 17 countries in Europe and the United States. (Photo: Reuters)

Primark chief Paul Marchant steps down after misconduct probe

PAUL MARCHANT, the head of fashion retailer Primark, has resigned with immediate effect after admitting to an "error of judgment" in his behaviour towards a woman in a social setting.

Associated British Foods (AB Foods), Primark's parent company, announced his resignation on Monday.

Keep ReadingShow less
Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

JAGUAR’S ambition to seduce younger, richer drivers was on full display in Paris with a presentation of its newest prototype, the Type 00, which promises all-electric luxury... at a steep price.

The low-slung, muscular-looking concept car presented to European reporters last Friday (21) prefigures a production model expected mid-2026 at a base cost of €150,000 (£123,472.8).

Keep ReadingShow less
Starmer-Trump-Getty

Trump has suggested the possibility of a 'great' trade deal that could help the UK mitigate the impact of tariffs he has pledged to introduce. (Photo: Getty Images)

Starmer, Trump talk trade deal progress in 'productive' discussion

KEIR STARMER and Donald Trump spoke on Sunday about ongoing UK-US trade negotiations, with Downing Street describing the talks as "productive."

Since leaving the European Union, the UK has been working to secure a trade agreement with the United States. Successive British governments have pursued a deal, but it has remained elusive.

Keep ReadingShow less
modi-trump-getty
Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)

India-US trade talks end with no sign of tariff relief

INDIA and the United States have agreed to move forward on finalising a part of their bilateral trade deal this year, but there was no indication of any tariff relief for India.

Trade discussions took place in New Delhi ahead of the implementation of US president Donald Trump's new trade tariff regime, which includes import levies on India, set to take effect from 2 April.

Keep ReadingShow less
Tesco Clubcard Changes: Update Your App Before the Deadline

The digital Clubcard offers convenience and flexibility

Getty

Tesco Clubcard changes: Customers urged to update app before Monday deadline

Tesco has issued an urgent call for action to millions of its Clubcard users, advising them to update their Tesco Shopping & Clubcard app before Monday, 31 March 2025. The supermarket giant is rolling out an important update to improve data protection and online security, and failure to update the app by the deadline will leave customers unable to access their digital Clubcard benefits.

Update to ensure enhanced security

The upcoming changes are being implemented to enhance the security of customer data and improve overall protection. Tesco has highlighted the importance of this upgrade, as it seeks to safeguard customer information and keep their online shopping experiences secure.

Keep ReadingShow less