On the first day of his four-day visit to India, Jeff Bezos, Amazon Inc, said that he will continue to invest in India. Amazon is looking forward to invest $2 billion on this festive season in India; he added.
Shopping season in India starts in September and continues till Diwali, and it is the top sales period in the country that accounts for more than 40% of sales for most of the brands. It has been reported that, the top three e-commerce giants in India, Flipkart, Snapdeal and Amazon are expected to spend up to $2 billion this festive season.
All online retailers are coming up with new deals and advertisement to persuade their customers and to differentiate themselves from the pack. Snapdeal alone has made 50 advertisement films, which will be aired across 85 national and regional channels until Diwali. Snapdeal also hired 28 celebrities including Mandira Bedi and Harsha Bhogle for their advertisement.”The month leading up to Diwali is going to be the biggest month in terms of sales and we want a bulk of it to happen on Snapdeal,” said Sandeep Komaravelly, senior vice-president of marketing at Snapdeal. “We wanted to break the clutter that surrounds festive ads,” he added, their intent is to get as many consumers to shop online as possible
Flipkart is again very focused this festive season. “It will be a concentrated one-week campaign, where as the big day approaches more details will be revealed,” said Mukesh Bansal, head of fashion and board member at Flipkart. However, the festive ads will continue beyond October 6. “The whole of October is very important. “
According to a report Flipkart and Snapdeal have already booked 1000 and 2000 TV ad spots, respectively. However, both the giants didn’t disclose the amount they have reserved for advertisement. Also, they didn’t shed any words about their further plans but as the Diwali comes closer, we can expect one of these giants to take the entire ad space for at least couple of days. Amazon is not lagging behind also, “We will be very visible and very aggressive with our marketing campaign across all media,” said Amit Agarwal, Amazon’s India country head.
This year Flipkart received $1.2 billion from investors, day after Amazon’s $2 billion investment was announced, earlier this year their rival Snapdeal too received $233.7 million as an investment. Industry experts said it is not surprising that e-commerce companies are going all out in their marketing. “This season we could see consumers moving in a big way from offline to digital shopping,” said Arvind Singhal, chairman of retail advisory Technopark.
According to experts, India’s e-commerce market may increase up to $22 billion in five years, and India is expected to become world’s third largest e-commerce market just after US and China.