Online discounts likely to be higher for smartphones, ACs: Report
Discounts on Smartphones: Discounts on e-commerce platforms are likely to be higher in this quarter in comparison to last year as brands are trying to exhaust their stock amid subdued consumer sentiment ahead of the festive season.
The discounts are most likely to be higher on smartphones, apparel, and groceries despite an increase in manufacturing and transportation costs, a report stated.
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Meanwhile, the FMCG players are likely to boost discounts despite the losses during the second wave of the coronavirus pandemic. The outbreak of coronavirus had hit sales sharply which had been on the rise since the second half of last year, it added.
E-commerce platforms like Amazon, Flipkart, Grofers, JioMart are offering up to 60 percent on biscuits, atta, spices, soft drinks, snacks, ghee, and soap from the month of July.
Even Flipkart is selling some grocery items at Rs 1. Can you believe it? Companies said that their sales during the second quarter were badly hit due to the coronavirus-induced lockdown in several states during April, May, and June.
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The supply lines were largely intact during the quarter despite lockdown as manufacturing continued. Due to this, there has been a glut of goods.
This is in comparison to the September quarter of 2020 when supply-related issues were hit as the country opened up. It also limited the scope of any discounts by online platforms.
Smartphones, which is the largest segment of e-commerce by sales at 45 percent, witnessed a massive demand in the September quarter. Most brands even ran out of stock, the report added.
The average discount this quarter is expected to be around 7-10 percent as compared to zero discounts last year.
-PTC News
