- Both the giants are offering huge discounts on their platforms.
- The Prime Day sale is global.
- Amazon India has already overtaken Flipkart with $7.5 Bn in GMV in FY18
Just as Amazon Prime Day— running this year for 48 hours — started early Monday afternoon in India, Walmart-owned Flipkart started its own four-day sale called Big Shopping Days.
Amazon Prime Day may be a dominant power in the U.S., but the internet retail company in India has a large competitor to compete within its huge annual sale.
Flipkart‘s sale provides up to 80 percent discounts on equipment, furnishings, apparel and books, the business featured on its blog and operates until Thursday — a complete two days longer than Amazon’s.
Last year, Walmart (WMT) paid $16 billion to take over Flipkart based in Bangalore, providing it a foothold in one of the largest foreign companies in Amazon. Since then, in an Indian e-commerce industry that Morgan Stanley expects will be worth $200 billion by 2027, the two American companies have been caught in a fight for the top place.
Gross Merchandise Value: Amazon vs Flipkart
Gross Merchandise Value Global e-commerce business Amazon’s Indian division, Amazon India, overtook Flipkart in the financial year ending March 31, 2018 with $7.5 billion in gross merchandise value (GMV), according to a latest study by investment bank and financial services business Barclays entitled’ Amazon Races To The Top Of India ECommerce.’
Flipkart, meanwhile, had a GMV of $6.2 billion on a separate basis. Flipkart is neck-and-neck with Amazon India in terms of GMV if these fashion devices are included.
Amazon cashing in with its Prime Subscription:
Despite the enhanced rivalry, Amazon (AMZN) is convinced that in its annual shopping bonanza, India will play a major role. Over the past three years, the firm has undertaken more than $5 billion to grow its India business.
Amazon utilizes the event to hook fresh participants on Prime, a subscription program that counts more than 100 million individuals around the globe as an indispensable aspect of their shopping life, in addition to flexing their bodies and juicing their annual marketing figures.
Revenue faceoff: Amazon India vs Flipkart
“Flipkart remains larger than Amazon in income terms ($3.8 billion vs. $3.2 billion), although Amazon is catching up rapidly and continues to expand much quicker (82% vs. 47%),” a report said. Its running costs for the year ending January 2020 could be in the range of $1.5 billion, it added.
The study also observed that Amazon is quickly expanding its investments in its Indian division (India in the calendar year 2018 constitutes 7 percent of Amazon’s global retail operating expenses)
Festive Sales and the E-comm. Giants:
A Redseer analysis demonstrates that Flipkart accounted for more than half of the GMV of the e-commerce sector as a whole for the festive sales days. The percentage of GMV revenues between Flipkart and Amazon was 62% and 38% respectively. The greater percentage of Flipkart was motivated by its significant mobile and fashion vertical marketing numbers.
Amazon’s spokeswoman declined to share country numbers but said India’s Prime membership has doubled over the past 18 months, making it one of the fastest-growing markets in the program.
We have millions of employees, and for many millions more we have aspirations,” stated the spokesman.
How Amazon Prime Day became the shopping Super Bowl while the sale of Big Shopping Days in India is attempting to play Prime Day spoilsport, Flipkart has another, larger annual sale later in the year when it also competes with Amazon.
Whatever be the event, the fab pair of e-commerce — Amazon and Flipkart — is anticipated to proceed their one-upmanship fight in Indian eCommerce in 2019 as it did in 2018.