Flipkart and Amazon Gearing Up for Festive Season, Relying on Large Appliances

Flipkart and Amazon Gearing Up for Festive Season, Relying on Large Appliances

Bengaluru: All the e-commerce giants are gearing up for the festive seasons as they rely on large appliances to be the driving factor for them. Flipkart and Amazon have started enhancing their handling and storage capacity for such products whereas Paytm is expecting the share of the category to double to 20 per cent of its overall sales.

Affordability products are expected to boost the sales of large appliances during the festive season, according to RedSeer Consulting.

Flipkart sees 40 per cent of its customers buying large appliances such as refrigerators, washing machines and ACs on EMI offerings, while Amazon expects one in three to do so and Paytm 20-25 per cent.

“We will be increasing our focus on affordability services as it would continue to be a significant growth driver for us,” a Paytm spokesperson said. “Large appliances contribute between 8-10 per cent of our overall sales during the non-festive season. This festive season, we expect this to grow to up to 20 per cent.”

Wider availability of credit and credit cards have been a key boost for purchases of white goods and non-essential products, according to RedSeer CEO Anil Kumar.

Amazon is set to push debit card EMIs this season, following Flipkart, which started it last year.

“The large appliances category has seen a 100 per cent growth since last year,” said Kaveesh Chawla, director, category management, at Amazon. “Programmes such as exchange and no-cost EMI on credit and debit cards have been critical purchase enablers for customers on Amazon.”

The festive season is expected to start from the second week of October, continuing up to Diwali, with smaller sales expected until Christmas. It is the busiest shopping season of the year.

The companies are also increasing their storage and logistics capacities for the category, with Flipkart looking to double up while Amazon is raising them for large appliances and furniture to 1.5 times last year’s level. Both have added dedicated fulfilment centres for large appliances this year.

Flipkart said the large appliance category is expected to be one of the largest this festive season.

“We have ramped up capacity by almost 100 per cent in the backend. We have opened several new warehouses and have been working with our brands and partners for many months now preparing for Big Billion Days,” a Flipkart spokesperson said.