Flipkart Demolishes Amazon; Declares 4X Growth During Festive Sales!

Flipkart, India’s largest ecommerce portal has once again claimed massive victory over Amazon India this festive season.

Just 24 hours before India’s biggest festival: Diwali kickstarts, Flipkart has claimed to generate 4X more business, compared to normal days.

In fact, Flipkart has said that ‘others’ are now irrelevant in Indian market!

Smrithi Ravichandran, senior director at Flipkart said,

“During this festive season, Flipkart had a disproportionate share making everyone else irrelevant,”

Few days back, we had reported Flipkart’s victory over Amazon during Dussera festive season, wherein they had claimed to have captured 70% of the online sales.

Interestingly, Amazon hasn’t yet come out with their side of this victory claim.

Does this mean that Amazon has accepted their defeat? So soon?

Flipkart: Tier 2/3 Cities Generating Maximum Sales

In their recent Diwali sales, Flipkart has claimed that Tier 2 and Tier 3 cities are generating maximum business for them. In fact, 6 out of 10 orders which Flipkart received this festive season came from these locations, rather than urban locations.

This claim from Flipkart perfectly proves our previous report, wherein we had stated that ecommerce boom in India is being fueled by massive shopping orders from Tier 2 and 3 cities, as per numbers from India Post’s CoD orders.

Last year, Tier2 and 3 cities accounted for 60% share in Flipkart’s overall sales, wherein this year, this number has increased to 65%.

Overall, Flipkart has said that smartphones witnessed 5X more sales, and large appliances registered 10X growth, compared to normal days.

Infact, smartphones were the best sellers on Flipkart, as they accounted for 60% of overall sales.

Demand For Gold Weakens This Dhanteras!

Meanwhile, in a related news, market reported that sale of gold has fallen by 30% this Dhanteras, a festival wherein Northen India buys Gold in bulk.

While jewellers from New Delhi and Gujarat, India’s two of the biggest markets, claimed that sale of gold this Dhanteras has dropped by 30-40%; sellers from Maharashtra and eastern states claimed that the demand increased by 15%.

Nitin Khandelwal, chairman, All India Gems & Jewellery Trade Federation (GJF) said, “The situation was pretty disturbing in the preDiwali period beginning from Navratri. The sentiment has turned positive today with footfalls increasing since morning,“

Analysts are stating that GST and related tax issues can be a reason for this drop in sales, but the sentiments are right now high, and the market believes that the sales will increase very soon.

Somasundaram PR, managing director (India), World Gold Council (WGC), said

“A good monsoon and stable gold prices are definitely encouraging consumers to make token purchases for the auspicious festival”.