Flipkart, the Walmart-backed homegrown start-up, has launched its biggest ever advertisement campaign to double up sales target to $1.5-$1.7 billion during the upcoming festive season sale, which starts on October 10. Placing an expensive bet, cash-rich Flipkart has reportedly pumped in around "Rs 200 crore" on festive media expenditure alone, a big part of which is celebrity endorsements. From Big B to Deepika Padukone to cricket celebrities and regional stars -- Flipkart is in no mood to spare an elbow room for its biggest rival, Amazon India.
Both companies together hold over 60 per cent of the e-commerce market share. While Amazon India's advertisement campaign focuses on garnering sales across towns and small cities, Flipkart has roped in a league of A-listers to boost sales target. Amazon ads have no star power but achieving high sale numbers in untapped smaller cities could give it a much-needed edge over Flipkart, say analysts.
Analysts expect the competition between Amazon India and Flipkart to be even fiercer this season as both these companies have pumped in billions of rupees to improve their product offerings and logistic capabilities to ensure better customer service. Both the companies are also offering a suite of payment options to customers as well as the promise of faster delivery.
In case of Flipkart, megastar Amitabh Bachchan, Deepika Padukone, Ranbir Kapoor, Diljit Dosanjh -- all are appearing in 20-second ads promoting its Diwali sales. Sports celebrities like Virat Kohli, Mahendra Singh Dhoni, Sunil Chhetri and Saina Nehwal have also been featured to attract young buyers.
To cash in on the popularity of regional stars, and increasing spending habits in smaller cities, stars from regional cinemas are also spreading the word for Flipkart. Regional stars include Prosenjit (Bengali), Mahesh Manjrekar (Marathi), Tamanna Bhatia (Tamil), Yash (Kannada), reported Mint, adding that media buyers estimate the company to spend around Rs 200 crore on festive ads alone.
For the first time this year, both Amazon and Flipkart will launch their flagship on the same day on October 10, which is a huge plus for rate comparisons before splurging. Amazon India will launch its Great India Festival on October 10, the same day that Walmart-backed Flipkart kicks-off its Big Billion Days event.
The run-up to Diwali is a crucial period for most e-commerce companies as customers tend to buy more during this season. Flipkart, which is aiming at achieving 50% of all smartphone sales during the festive month, has recently pumped in Rs 3,463 crore into its online marketplace, Flipkart Internet. This is its biggest capital infusion since Walmart acquired a majority stake in the company. Amazon likewise pumped in Rs 2,700 crore into Amazon Seller Services in August.
Edited by Manoj Sharma