Big Billion Day strikes a chord, Flipkart claims better brand recall than rivals

Higher sales were reported in categories such as smartphones, electronics, fashion and large appliances

E-commerce marketplace Flipkart says it has had a better brand recall among customers this festive season than its rivals. According to the Bengaluru-based firm, sales on its platform spiked during rival Amazon’s sale during October 17-20, despite it not running any such campaign or offering extra discount. 

Higher sales were reported in key categories such as smartphones, electronics, fashion and large appliances. The unexpected jump is making Flipkart course-correct its estimates for the month. With the company’s second sale planned on October 25-28, it expects another large turnout that could help boost sales to nearly four times its monthly sales average. 

“What we saw after Big Billion Days (BBD) was a 30 per cent increase in our baseline, but on October 17 we saw a spike in terms of revenue and traffic. While we had not spent on anything, we ensured customers that get great offers throughout the month,” said Smrithi Ravichandran, director of category design and management at Flipkart.

Flipkart’s ads promoting the BBD struck a note with customers, breaking away from rivals Amazon and Snapdeal’s strategy of trying to create an emotional appeal, the company said. 

The campaign reached 120 million people who bought 15.5 million products on Flipkart during the first BBD this season. 

“It is not always about discounts alone. It should be giving cash to the consumers, because giving gift cards and other things is a roundabout way of doing it. It’s great to get loyalty and repeat customers, but you should not overdo it,” added Ravichandran. 

While deals on e-commerce platforms have been low this year, Flipkart has been looking at bringing value through bank partnerships, no-cost instalment payment schemes, and product exchanges. It says this, along with a strong brand recall, has helped it maintain its leadership in the e-commerce market.

Amazon, which has pledged to invest $5 billion in India, however, stakes claim in being the leader. Armed with sufficient funds, it wants to outprice the competition. It sold 15 million items (including an estimated two million Prime memberships) during its recent sale. 

A duel of words between Flipkart and Amazon ensued soon after the first round of festive sales, with Amazon saying it’s the leader. Now with a jump in sales at Amazon’s marketing expense, Flipkart is trying to add fuel to the fire.

“We don’t really have to do any chest-beating. If customers are coming despite us not doing too much of marketing and communication, it itself shows that we are the leader,” said Ravichandran.