Flourishing online purchase of gift items, especially jewellery and flowers, on auspicious occasions have prompted banks, along with existing e-retail marts, to jump into the discount business. Generally, banks and online retail companies take additional delivery and other administrative charges from customers to execute orders.
While Kotak Mahindra Bank offers 18 per cent discount on domestic deliveries and 12 per cent discount on international deliveries through online purchase over and above Rs 250 off on purchases of Rs 1,000 and above, ICICI Bank’s online shopping venture First Data also avails discount offer in association with its registered retailers across the county.
Sales of gift items are likely to flourish during the occasion of the Mother’s Day which is generally celebrated on the second Sunday of May, falling on May 13 this year.
The online shopping marts have made gift purchases easy through a number of their retail members. They also tie-up with banks to ensure timely payment, in addition to a handful of monitoring agencies like ICICI Merchant Services and PayPal, and courier services for smooth delivery of goods. This helps customers evade risks of carrying huge cash and visit retail shops individually for selection of an article of their choice.
“The estimated Rs 50,000 crore e-commerce business is growing at an overall 40 per cent. Of this, online flower sector has been rising between 70-75 per cent,” said Kunal Gothivarekar, director (Sales) of ICICI Merchant Service, an online shopping venture.
Between Fist Data and ICICI Bank with 81 per cent and 19 per cent equity respectively.
ICICI Merchant Service and PayPal are online payment solutions and service providers connecting buyers with banks and retailers.
Demand for roses has spiraled upwards by over 25 per cent in domestic and about 30 per cent in international markets. Rising demand from tier II and III cities apart from urban centres spur sales of roses on special occasions including the Mother’s Day.
Meanwhile, the online trade platform Babyoye.com offers a flat 10 per cent discount on purchase of any apparel worth Rs 1200 on the Mother’s Day. On diamond jewellery purchases worth over Rs 30,000 upto May 15, the New Delhi based PC Jewellery offers 1 gm 22 kt gold coin free. The company has an impressive array of collections for Mother’s Day gift with vibrant varieties and rare masterpieces. The online shopping mart India flower mall also offers around 6 per cent discount on flower and cake booking. Exciting offers can also be availed from the website giftstoindia24x7.com. OfferBean, an exciting and engaging online fun shopping platform, is offering today free service deal for readers in tier II cities which means customers do not have to pay advance to book deal but you will have to pay remaining amount to merchant if applicable. Another online shopping portal called Fashos is giving a flat Rs 200 off on purchase of Rs 500 or more for there registered users.
Meanwhile, the gems and Jewellery industry has found a way to shine online. Data compiled by eBay India Guide 2011 suggest that close to 50 per cent of diamonds and diamond jewellery is being purchased by buyers from outside India, mainly from USA followed by Canada and UK, with a piece of jewellery selling every three minutes on eBay India. And, Indian SMEs in the gems and jewellery industry have latched on to e-commerce in a bid to woo global consumers.
Through online retailing, however, small and medium enterprises (SMEs) have growth well. Bimal Thakkar who sells both jewellery and watches online through his company Infinite Shopping Inc., has successfully served lacks of customers in over 90 countries, including US, UK, Australia, Brazil and Japan. The company’s turnover has jumped manifold from around $200,000 in 2005-6 to $2.6 million in 2011.
According to Gothivarekar, e-commerce sales may grow manifold in future due to customers’ more technical savvy and convenience banking along with complaint free delivery of booked items to customers.
