The year 2014 was all about crazy discounts and deals as far as ecommerce industry is concerned. However waves of new change can be seen in 2015 as etailers are moving away from the discount model. Additionally they are determined to use their resources in building technology, adopting other means of marketing, new strategies and improving their product offerings in order to gain & retain customers.
Right from the beginning of this year one could notice aggressive promotions of Amazon, Snapdeal and Jabong which projected them as the ‘best online fashion destination.’ Tie-ups with designers & celebrities and sponsoring big fashion events are some other strategies that helped etailers to build that image even further. Latest from the corner is that Amazon has managed to replace Wills Lifestyle and grab title sponsorship of India Fashion Week, leaving behind Snapdeal and Myntra.
The bi-annual fashion week organised by Fashion Design Council of India (FDCI) will be now known as Amazon India Fashion Week. According to the reports, this association will cost Amazon nearly 100 crores but will definitely give them an edge over other competitors. On the similar lines, last year Snapdeal had replaced Vodafone as the official sponsor of Big Boss, the very popular television reality show. This association turned out to be very profitable for Snapdeal as their sales soared.
So it looks like this trend will continue. CEO of advertising media GroupM South Asia, CVL Srinivas said, “There is heightened competition among e-commerce players leading them to buy impact properties in media. We expect them to continue advertising aggressively on traditional channels like television and print to build their brands,”
While other players are working out sponsorship deals, Flipkart plans to maintain its position by roping in 1 lakh sellers this year. They will also offer financial support to sellers with the help of their reliable financiers and associates. As per a senior Flipkart executive, the loan value is said to be Rs. 5-10 lakh on an average, which can go up to Rs. 50 lakh.
Ankit Nagori, Senior Vice-President, Flipkart said “Last year, we saw a lot of sellers across India adopting the e-commerce marketplace model both from metros as well as non-metros. Currently, we have thousands of sellers on our platform and are expecting exponential growth in our seller based this year.”
In terms of numbers, Snapdeal is supposed to have the highest number of merchants, 100,000 approximately. This is followed by Amazon which has over 18,000 registered sellers listed on their portal. On the other hand, with the planned addition of 1 lakh sellers, Flipkart will race ahead of its competitors by the end of this year.
It is a healthy change that we are witnessing in the Indian ecommerce industry. The fact that big players like Flipkart, Amazon, Snapdeal are adopting new ways to enhance customer shopping experience besides flashing unbelievable discounts shows maturity and earnestness. This will also lead to all big & small sellers getting a fair deal instead of getting crushed under the pressure of making their products available at a discounted rate. The current trend protects both, Buyer & Seller.
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
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