Moneycontrol
Last Updated : Oct 12, 2018 04:14 PM IST | Source: Moneycontrol.com

Likely to exceed our sales target by fourth day of Big Billion Days: Flipkart CEO

This year, Flipkart’s festive sale -- Big Billion Days -- overlaps with rival Amazon’s The Great Indian Festival sale. Both companies started their respective sales on October 10

Priyanka Sahay @priyankasahay

Flipkart, which hoped to sell twice the amount it sold in last year’s five-day festive sale this time around, will be exceeding its own targets, even before the sale concludes, according to a top executive.

The higher sales will possibly be driven by a surge in the number of orders from new customers, the executive said.

“The early indicators are very strong. It is possible that we do all our numbers on the fourth day itself,” Kalyan Krishmamurthy, Chief Executive Officer at Flipkart, told a select group of reporters on Wednesday during a late night meeting.

This year, Flipkart’s festive sale -- Big Billion Days -- overlaps with rival Amazon’s The Great Indian Festival sale. Both companies started their respective sales on October 10.

Amazon has claimed that it sold around 75 percent of all smartphones sold on the first day of the two retailers’ festive sales. Krishnamurthy, however, took a dig at the company, saying it was “losing relevance in India”.

“We see them losing relevance in India. Do we worry about them? On a scale of zero to10 it is close to zero today. We do not see that much relevance for the Indian users coming from our competition today,” he said.

Krishnamurthy was responding to a question on whether Flipkart feared losing customers to Amazon during the sale period. He claimed that Flipkart understood Indian customers better.

The statement comes at a time when Amazon is trying to tap its next 100 million customers, who it believes will come from tier-II and tier-III cities in India. The online retailer has also launched a Hindi version of its mobile app to deepen its presence in smaller towns.

This is not the first time Flipkart has criticized its rival. During the 2016 festive sale, the company had claimed that Amazon’s numbers were inflated because it was selling memberships and small-ticket items like 'hing, churan and besan'.

Flipkart claims that keeping in mind the limited real estate on the smartphone of an average customer, it has maintained a light app.

“What the middle of the market likes is huge amount of media and images on the app. It is very heavy from that point of view but you look at the size of the app, it is still very light, less than 10 MB. So that is what I mean by digital reach, it is something very unique about our business,” said Krishnamurthy.

The company is also focusing heavily on private labels.

While the two companies haven’t said anything about how much they expect to sell during the festive period, research firm Redseer Consulting said that online retail firms, led by Amazon and Flipkart, may sell around $3 billion worth of goods during the five-day sale this year.

Krishnamurthy also said that as compared to last year, Flipkart has spent lesser in media marketing this time around. “If you will look at the percentage of topline, it will be actually lesser than the last year, which is the way a business should be. We have scaled to become more efficient,” he said.

Flipkart, which is known to be getting a majority of its business by selling smartphones, is also focusing on small-ticket items this year such as unbranded fashion and recharges, besides appliances and television.

The company claims that 50 percent of its customers now come for fashion products from categories such as clothing, footwear and accessories.
First Published on Oct 11, 2018 05:27 pm
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