Industry officials have stated that Amazon and Flipkart will accelerate their Republic Day sales by 4-5 days this year due to mounting Covid-19 infections and additional restrictions affecting their operations, including supply chain and delivery timings.
According to them, the country’s two main ecommerce platforms have already increased their inventory and will begin selling around January 16-17.
This year, a longer-than-usual sales period is predicted, as activity following Diwali has been weaker than last year. In addition, the marketplaces see a bigger possibility because rising infections are harming brick-and-mortar merchant sales, according to CEOs.
Flipkart and Amazon usually start their Republic Day promotions around January 20-22 and run for 3-4 days.
“The online Republic Day sales are getting ahead of schedule because marketplaces are concerned about continued outbreaks of infections and tighter state regulations, which could disrupt supply chains and deliveries,” said Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd (SPPL), which manufactures and sells Kodak, Thomson, Blaupunkt, and Westinghouse consumer electronics and appliances online.
“Also, sales in offline retailers are already decreasing, so marketplaces have a better possibility to convert business,” he added.
As of Saturday afternoon, emails submitted to Amazon and Flipkart have gone unanswered.
The decision to postpone sales, according to a top executive at one of the marketplaces, stems from a fear that the last-mile delivery crew may become infected, interrupting operations.
On Saturday, India recorded 141,986 new Covid-19 cases in 24 hours, up 21% from Friday.
“We don’t expect any big restrictions on ecommerce,” said the marketplace executive, “since most state governments have realised that online purchases are an efficient and safer option for consumers to purchase during the epidemic.”
While weekend curfews have been imposed in Delhi and Karnataka, ecommerce operations and delivery remain permitted. During its Sunday shutdown on January 9, Tamil Nadu is the only state where online product deliveries, except for food, are prohibited.
Ecommerce retailers have been stocking for the discounts since the latter week of December, according to Godrej Appliances business head Kamal Nandi.
“Since Diwali, demand has been muted both offline and online. As a result, marketplaces will aim to clear inventories, while Covid cases in India are expected to peak in the third week of January, according to some forecasts,” he said.
Due to increased discounts after the Navratri-Dhanteras holiday and Prime Day sales on Amazon, Republic Day sales is the first sale of the calendar year and one of the top business periods for ecommerce across categories.
During the Republic Day period, brick-and-mortar stores, too, run special discounts in electronics and groceries, while garment retailers’ end-of-season sales peak around that time.
Industry executives predict that large offline retailers such as Reliance Retail, Vijay Sales, Spencer’s Retail, and Nature’s Basket will see a boost in their internet business during the Republic Day sales this year, since many consumers will avoid going to stores or malls.