Time for “Big Billion Days” & “Great Indian Festival”
Festivals are not just about traditions, fun, and food anymore in India as with changing times they have become a sign to buy new things at the most affordable prices from online shopping platforms. The Indian e-commerce sector has witnessed explosive growth in recent years. Key events such as the 'Big Billion Days’ by Flipkart and the 'Great Indian Festival' by Amazon have played a significant role in driving this growth. For the 2021 festive season, Indian e-commerce platforms generated sales with a Gross Merchandise Value (GMV) of $9.2 billion, a 23% increase from last year’s $7.4 billion. These staggering figures underscore the immense popularity and impact of these sales extravaganzas on the Indian e-commerce landscape.
Great, isn’t it? You found this blog right on time because both of these sales are again right around the corner, loaded with great deals, offers, and discounts. Great Indian Festival by Amazon is starting from 8th October 2023 and one day early on 7th October 2023 for prime members whereas Big Billion Days by Flipkart is scheduled from October 8 to October 15, 2023, and 24 early for Flipkart plus members.
This blog covers some facts, figures, and undeniable discounted product lists, anti-competitive law, the importance of logistics in e-commerce, and the untapped rural market. So let’s go ahead and gain some knowledge about the biggest sales in India before they begin-
Riding the Wave of Big Sales Events
India's e-commerce giants, Flipkart and Amazon, have become synonymous with mega-sales events. During the 'Big Billion Sale' in 2022, Flipkart reported a record-breaking 180 million visits to its platform during the event, with a substantial portion of these visits converting into sales. Amazon's 'Great Indian Festival' was equally impressive, contributing to the company's 68.0% growth in revenue from its Indian operations in the same year. These statistics illustrate the power of these events in driving sales and customer engagement.
Key Highlights from the Sale by Amazon (Great Indian Festival)
Key Highlights from the Sale by Flipkart (Big Billion Days)
We are pretty sure that these offers and discounts from both the sales are deniable and attractive, and we also want you to get the most out of these sales. However, now you know about the sale and what it has to offer you, we should delve into the next part where we can get an understanding of the legal maze of competitive law surrounding e-commerce platforms.
Navigating the Legal Maze
While e-commerce companies celebrate their sales success, they also grapple with an increasingly complex legal landscape. In India, section 3 of The Competition Act of 2002, prohibits anti-competitive agreements, and Section 4 prohibits abuse of dominant position.
India's evolving e-commerce regulations have significant implications for these businesses. For instance, the revised FDI policy in 2020 introduced stringent rules on inventory control for e-commerce marketplaces. This policy change led to a major restructuring of business models, with companies like Amazon and Flipkart adjusting their operations to comply with the law.
Furthermore, the proposed National E-commerce Policy drafted in 2019, and the final presentation in 2023 in India aims to address issues related to data localization, counterfeit products, and unfair competition practices. E-commerce companies are closely monitoring these developments as they could potentially reshape the industry. In 2022, compliance-related expenditures for e-commerce firms in India reached an estimated $300 million, showcasing the cost of adapting to changing regulations.
Logistics: The Backbone of e-commerce
Behind the scenes, logistics and supply chain management are the unsung heroes of the e-commerce sector. In 2022, the Indian logistics market was valued at approximately $215 billion. E-commerce companies have heavily invested in building robust logistics networks to ensure efficient deliveries. Companies like Flipkart and Amazon have introduced innovative delivery solutions, including drones and electric vehicles, to meet growing customer demands.
During the 'Big Billion Sale' in 2022, Flipkart's logistics arm, Ekart is primed to bring the benefits of e-commerce to the next 200 million consumers this festive season highlighting the scale and efficiency of their operations. Amazon claims to have sold 10 lakh unique products from small and medium businesses and startups during the first 36 hours of the 2022 Great Indian Festival, all thanks to its fast and reliable logistics.
Both of these companies offer same-day delivery and one/two-day delivery services. Even for the exchange or return, both Flipkart and Amazon has tied up with various logistic partners for fast processing of customer request. These achievements underscore the pivotal role logistics play in delivering a seamless shopping experience.
Rural India: The Next Frontier
As e-commerce companies continue to conquer urban markets, rural India represents the next frontier. In 2022, rural areas in India accounted for 5-6% of e-commerce demand. By 2026, it's expected that rural areas will account for 20% of e-commerce demand. Companies are tailoring their strategies to cater to rural consumers, with Amazon launching a Hindi-language version of its platform and Flipkart's 'Kirana' program partnering with local stores to expand reach.
Moreover, investments in last-mile delivery infrastructure have been crucial. India’s e-commerce sector received $15 billion of PE/VC investments in 2021 which is a 5.4 times increase year on year. This is the highest investment value received by any sector ever in India to improve rural logistics and expand their delivery networks to remote areas. These investments are expected to yield substantial returns as rural consumers increasingly turn to online shopping for convenience and a wider range of products.
Let’s Explore, Let’s Shop, Let’s Get Festive!
The Indian e-commerce sector is a dynamic landscape where facts and figures tell a story of remarkable growth and adaptation. Mega-sales events like the 'Big Billion Sale' and 'Great Indian Festival' continue to shatter records, while e-commerce companies navigate intricate legal frameworks. Logistics and supply chain management remain the industry's bedrock, ensuring customers receive their orders swiftly. With rural India emerging as a promising market, e-commerce companies are investing heavily to tap into this untapped potential.
As we witness the continued evolution of the Indian e-commerce sector, one thing is evident - it's a thrilling journey with breaking records every year our guides, pointing towards greater opportunities on the horizon.