Flipkart and Amazon has been going all out in the last one month to take on each other with The Big Billion Days and The Great Indian Festival but what is interesting to note is that the digital spend of both the companies have significantly increased compared to previous years. The study done by RedSeer highlights that the shift from traditional advertising to digital marketing has worked wonders for them with 70% of the respondents polled as part of the study revealing that they got to know about this year’s sale through various digital channels.
This war between Flipkart & Amazon with Paytm joining the party is going to continue till the end of this Diwali. According to RedSeer, “Low-cost social media promotions have worked as a high-return channel of promotion for the etailers as a majority of the respondents are reached through this medium. This continues the trends started by Flipkart last year where it achieved high returns using primarily digital channels.”
What was started by Flipkart last year when the company revamped its marketing strategy, Amazon has started following suit. Both the biggies had now learnt that the expensive marketing and branding campaigns burnt a hole in their pockets wherein they used to spend crores in attracting new customers and whereas the returns used to be less.
Though it is very premature to say who won and who lost but the fact remains that the overall online retail market is expected to expand during the festive season sale. According to RedSeer, With the festive quarter typically accounting for 35-40% of all annual sales for the industry gross sales or gross merchandise value across online retailers may reach $1.7 billion in this festive sales period, a jump of 62% from last year.