Walmart-backed online retailer Flipkart is expecting to triple sales of its small home and kitchen appliances category during this year’s Big Billion Days event as compared to last year, on the back of bigger product selection, exclusive brand partnerships and deeper discounts, said a senior executive of the company. The small home and kitchen appliances include products like mixer grinder, water purifiers, irons, and food processors.
“Small home and kitchens appliances is one of the most critical businesses from a customer’s perspective. Of the organised market, 40-50 percent of this business has moved online in the last few years. We are expecting 3X sales in this category year-on-year during the Big Billion Days,” said Sandeep Karwa, senior director-TVs, and appliances at Flipkart.
The company has doubled its products selection under small appliances category to more than 20,000 this year and had exclusively tied up with leading players like Philips, Bajaj, Hindware, Eureka Forbes, Pigeon and more to sell some or their entire range of kitchen appliances on its marketplace. New appliances like egg cooker, pasta maker, and popcorn maker are seeing massive growth according to the company.
Flipkart is also betting big on its private label brands to help it achieve the desired growth.
“Our private label FlipkartSmartBuy and Billion will play a very critical role in acquiring new customers by driving affordability. The private label will contribute to upwards of 20 percent this festive season,” Karwa said.
According to Karwa, this year, consumers can expect discounts of up to 65 percent on many small appliances during the annual event, which is much more than 40 percent discount offered last year. The company is also positive of getting almost half of its sales from the smaller cities and towns of India.
“Small appliances as a category is seeing massive growth in tier II, III and IV cities of India as a lot of these products are not available in these geographies. In the last 6-months, we have seen a spike in tier II, III and IV city sales. Metro contribution has dropped from 55 percent to 45 percent, while tier II, III and IV cities are contributing much more to the overall sales in this category. Despite the rise in sales in metros, these other markets are growing at a faster pace,” said the executive.
Flush with cash, the Walmart-backed company is not holding back on marketing efforts and has partnered with some of India’s biggest superstars including actors Amitabh Bachchan and Deepika Padukone and cricketer Virat Kohli to bring in its flagship sales event. The move will help the company to acquire new customers into the fold, said Karwa.
Both Flipkart and Amazon will launch their annual sale event on October 10 where they plan to compete across categories with exclusive launches and cheaper deals during the five-day sale. Also on offer will be a suite of payment options for customers and faster delivery. Both expect a bulk of the orders to come from towns and small cities this year. Apart from this both Amazon and Flipkart, have rolled out a host of finance options, including an interest-free credit access of up to Rs 60,000, which people can avail of to shop on these platforms.
The Economic Times had previously reported the e-commerce giant is expecting the gross sales from its upcoming five-day Big Billion Days annual sale to double from last year’s event to over USD 1 billion. —Economic Times