The Business Model of Flipkart, Snapdeal, and Amazon During Festive Season Sales
Every e-commerce business aims to maximize profits, and during the festive season, strategies shift to capitalize on increased consumer spending. Let's delve into the business models of Flipkart, Snapdeal, and Amazon during these crucial times, focusing on their pricing tactics and objectives.
Price Manipulation and Strategic Discounts
During the festive season, it is not uncommon for these e-commerce giants to strategically manipulate prices to gain a competitive edge. One common practice is price hiking followed by discounts, a tactic often referred to as price manipulation. For instance, several weeks before the festive season, the price of a product might increase by 2-5%. As the big sales events approach, these companies offer discounts, making the overall price appear more attractive to consumers.
I have experienced this pattern firsthand. When shopping for a laptop a week prior to Amazon's festive season sales, the price would soar by 5%, only to be offered at the original price during the sale period. This behavior is typical, and consumers can track these changes to make informed purchasing decisions.
Timing Is Everything
The best time to buy a product is usually a week to two weeks before the festive season sales. During this period, you can take advantage of the pre-discounted prices, often getting a much better deal than during the actual sale. However, shopping a couple of weeks after the festive season can also be a good time, as the initial surge in demand subsides, and prices stabilize.
Strategies and Objectives
Flipkart, Snapdeal, and Amazon all leverage the festive season as a key opportunity to drive sales and increase market share. Amazon, for example, focuses on Diwali sales as a strategy to capture more market share from rival Flipkart. Meanwhile, Flipkart aims to achieve similar objectives with its own sales events, emphasizing on attracting more customers while minimizing promotional costs.
The business models of these companies do not undergo significant changes during the festive sales period. Instead, the objective shifts to driving more sales with fewer promotional expenses. This strategy allows them to maximize profits and retention by creating a sense of urgency and offering attractive deals.
Conclusion
Understanding the business models and pricing strategies of Flipkart, Snapdeal, and Amazon during festive season sales is crucial for savvy shoppers. By recognizing the patterns of price hikes and discounts, consumers can make informed decisions, ensuring they get the best deals possible while supporting these dominant e-commerce players.