New Delhi: Flush with funds, e-commerce companies are gearing up to launch their controversial mega Diwali sale once again. The last year success of festival sale by e-commerce companies had generated a huge controversy with retailers blaming them of “predatory pricing”.
However, for e-commerce companies like Flipkart, Snapdeal, Amazon and ShopClues, which are involved in cut-throat race to gain market share, Diwali is something they can’t ignore.
Snapdeal, which only last month raised investment of $500 million, has fired the first salvo with its ‘Diwali Preview Monday’ sale on September 28, while other e-commerce companies like Amazon, Flipkart, PayTM, ShopClues are expected to come up with their campaigns soon.
Snapdeal is promising discounts up to 70 per cent off across mobile, electronics, fashion and home categories during the Diwali Preview sale. It is calling Monday sale as “a sneak-peek into what is in store this festive season”.
Festival season in India will start next month with Navratri festival next month. During the last festival season, Snapdeal had launched mega sale ‘Big Sale Day’, which led to 15 times jump in traffic and clocked sales of Rs 1 crore a minute over a period of 10 hours.
Flipkart had its ‘Big Billion Day’ sale where steep discounts were offered on across products. Flipkart’s ‘Big Billion Day’ sale clocked $100 million in gross merchandise value in first 10 hours and led to server problems.
However, retailers had claimed that online shopping websites had eaten away 45 per cent of their business during last Diwali. They had demanded the government to look into their funding and business model....