The Battle Over Republic Day '22

Ecommerce in India is an interesting duopoly with Amazon and Flipkart hogging up nearly 80% of all ecommerce orders. These two massive marketplaces are in a highly competitive zone with the goal of capturing higher market and user share.

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While similar, Amazon and Flipkart have managed to differentiate their products to consumers. Amazon made Prime a key benefit with faster deliveries, media content (Amazon Prime Video) and other benefits. Flipkart built their own loyalty program with FK Super and integrating short content format within the in-app purchases.

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These marketplaces collide head on during festivals and holidays when they compete for higher share of wallet by driving sales volumes. Republic day in Jan 2022 was once such an event.

Amazon crafted a week-long sales period with a multitude of offers from merchants and banks. Overall it was a successful execution for Amazon as it was able to increase its average daily Gross Merchandise Value (GMV) by 110%* during the sales period. Amazon was able to drive this growth on account of increasing average number of orders per day by 26% and improved its Average Order Value (AOV) by 61%

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Flipkart on the other hand had a different strategy – they had peppered the whole month with many short sales periods promoting different categories of products - TVs, Mobile, fashion etc. Interestingly, this strategy also reaped the benefit of higher average daily Gross Merchandise Value (GMV) by 98%. Flipkart was able to drive this growth on account of increasing average number of orders per day by 47% and improved its Average Order Value (AOV) by 36%.

The Republic day war was keenly contested and Amazon came up ahead by a whisker, executing many strategies flawlessly. It ran high decibel omni channel media campaign to drive traffic, increase conversion via discounts and cashback benefits and lastly focused on high value categories like Mobiles, TVs and Home Appliances.  

For more such interesting insights – keep watching this space.  

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‍* (Amazon Sales Period in consideration of analysis - 16th Jan - 23rd Jan)

** (Flipkart Sales Period in consideration of analysis - 16th Jan - 22nd Jan)

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