Soon after offline retailers put up monsoon discounts, online retailers too have joined the suit. But there’s a battle brewing between online retailers and brick-and-mortar stores, report CNBC-TV18's Priya Sheth and Ritu Singh. Flush with USD 3 billion in fresh funding, Amazon is running '48 hour sale' while rival Flipkart is also playing the game with gusto offering discounts on select categories like large appliances. Experts say that though online players have begun late, traditional retailers are feeling the heat. Offline players are realising that they have to have competitive sale periods to online because if the customer already shops online they're not going to come and shop offlline, said Ashish Jhalani, Founder, eTailing India, adding that discounts alone may not be enough.

1. wwww.etailingindiaexpo.com
End-of-season sale war brews between offline,
online retailers
Soon after offline retailers put up monsoon discounts, online retailers too have joined the
suit. But there’s a battle brewing between online retailers and brick-and-mortar stores,
report CNBC-TV18's Priya Sheth and Ritu Singh. Flush with USD 3 billion in fresh funding,
Amazon is running '48 hour sale' while rival Flipkart is also playing the game with gusto
offering discounts on select categories like large appliances. Experts say that though online
players have begun late, traditional retailers are feeling the heat.
Offline players are realising that they have to have competitive sale periods to online
because if the customer already shops online they're not going to come and shop offlline,
said Ashish Jhalani, Founder, eTailing India, adding that discounts alone may not be
enough.
Jhalani said that as e-tailers are concentrating more on their profits, they are looking at not
funding the discounts themselves and that's impacting the sales they are getting.

2. wwww.etailingindiaexpo.com
eTailing India Thought Corner
Retailers Vs eTailersplacing bet on Independence Day Sale
Amazon, Snapdeal and Flipkart, the three big e-commerce companies, have again with their
Independence Day sales started a discounting war.
While the online sales could continue, the trader bodies intent to complain DIPP against
these e-commerce firms for flouting FDI rules. “Sellers are being forced to toe these
marketplaces' line and offer discounts. The sellers who are getting visibility are paying
through their noses," said a spokesperson of All India Vendors Association.
Online retail sales fell to an annualized $12 billion in June, compared with $13 billion in
March and $15 billion in December, according to estimates by research and advisory firm
RedSeer Management Consulting. This again indicates when the discounts are pulled out;
Indian shoppers aren’t enthusiastic about spending money online.
Festive season is nearing and Flipkart and Amazon will use every muscle. However, it would be
interesting to see how marketplaces manages discounts in order to keep offline traders/brands
businesses secure along with compliance of FDI norms.