Amazon, Flipkart start festive battle: Draw up sales strategy in war rooms
On Saturday night, hundreds of people were filled with the songs and music of singer Kailash Kher and his Indian fusion band Kailasa, who had come to perform at a venue near the World Trade Center (WTC) in Bengaluru’s northwest district. But inside the WTC, which houses Amazon India’s headquarters, Manish Tiwari, vice president and head of the consumer business in India, Amazon, hides in the war room, anxiously watching the big screens. It analyzes the traffic the e-commerce firm is witnessing for its flagship festive sale, the Great Indian Festival (GIF), and to strategize and make informed decisions.
As the clock struck 12, online platforms Amazon and Flipkart as well as Meesho and Myntra exploded. Millions of shoppers went online to grab the special deals on offer as e-commerce firms began organizing their biggest festival sales over the weekend.
“We’ve all been up since last night. It’s a very intensive activity,” Tiwari said in an interview in one of the military rooms at the WTC. “You can prepare as much as you can. But it’s like taking board exams and you’re always tense.”
Dressed in a black Amazon jacket, jeans and sneakers, Tiwari was seen walking to several military rooms in the building, which operate around the clock. They are equipped with large screens that display various dashboards of data and analysis. This includes website traffic, sales figures and products that customers shop for. Warrooms are also equipped with gourmet food, snacks, energy drinks, bean bags and door desks for employees to relax and collaborate. Amazon has been preparing for the sale event for 10 months. The firm also has military rooms in various countries and cities such as Hyderabad, Seattle, Vancouver, Luxembourg and Dublin, which are focused on India during the month-long GIF event.
“We’ve seen huge demand, which is great, but it’s also scary because you don’t want anything to go wrong,” Tiwari said. “The sentiment was different a few quarters ago. There were murmurs of inflation and slowdown. But this Diwali is different. I don’t remember such a positive consumer sentiment compared to the last 4 years. We think this year’s Diwali sale will be the biggest and by a (significant) margin.”
Indeed, e-commerce retailers are expected to garner sales worth Rs 90,000 crore this festive season, up 18-20 percent from last year, according to a report by Redseer Strategy Consultants. This will be driven by around 140 million shoppers expected to transact online at least once this festive month.
Amazon India has created more than 100,000 seasonal job opportunities across its operational network for the Indian festive season. New hires will pick, pack, ship and deliver customer orders safely and efficiently. The new hires also include customer service associates. The company has fulfillment centers spread across 15 states offering 43 million cubic feet of storage space for the seller’s inventory. It benefits over 1.3 million sellers in the country. Amazon India has fulfillment centers in 19 states, along with a network of nearly 2,000 Amazon-operated and partner delivery stations. In addition, there are 28,000 I Have Space partners and thousands of Amazon Flex partners who will deliver products to customers across the country. The company also uses partnerships with Indian Railways and India Post, as well as Amazon Air, the cargo airline the e-commerce firm launched this year to transport packages.
Manish Tiwari, Country Manager, India Consumer Business, Amazon India in a military hall at the Amazon India headquarters in Bengaluru for the Amazon Great Indian Festival 2023 (Photo: Peerzada Abrar)
About 30 kilometers from Amazon’s head office in Bengaluru, at Walmart-owned Flipkart’s headquarters on the Outer Ring Road, the atmosphere is electrifying. Thousands of Flipkart employees, or ‘Flipsters’, came together to celebrate and kick off the 10th edition of the company’s much-awaited The Big Billion Days (TBBD) 2023 from October 8 to October 15. A musical group was invited to entertain the employees. Hundreds of employees were seen beating small drums together as well as waving light sticks to celebrate during the event. In addition to hearing from the organization’s leadership, they were joined by vendors who spoke about the incredible impact of a shopping event like TBBD. Among other fun engagements there was a traditional “Wishmaster Rally flag-off” featuring delivery partners. For Flipkart and its customer base of over 500 million, the company said the festival is not just a shopping event; but it is a collective effort of thousands of people and small businesses to deliver value to every Indian.
“There are huge lessons for all of us from these 10 years and every year (TBBD) gets better for our customers, sellers and partners,” said Hemant Badri, senior vice president, head of supply chain and customer experience, Flipkart Group. in an interview. “The preparation has been phenomenal in terms of infrastructure readiness. That includes adding new facilities and last-mile hubs in Tier 2 and Tier 3 regions, and we’re doing a lot of automation.”
Flipkart has generated over 100,000 new job opportunities in its supply chain, including fulfillment and sorting centers and delivery centers. These seasonal jobs include local kirana delivery partners, women and people with disabilities. This year, Flipkart expanded its supply chain with last-mile distribution centers and large-scale fulfillment centers, strengthening its reach in tier-III cities and beyond. It has added more than 19 lakh square feet of space in Uttar Pradesh, Gujarat, Bihar, Punjab, Rajasthan and Telangana. The e-commerce firm also plans to deliver more than 40 percent of the shipments during the festive event through its Kirana delivery program. Flipkart also offered various technological interventions. Among them is an AI-powered conversational assistant, Flippi, which will replicate the in-store experience with expert guidance and a simplified shopping process. It also has integrated augmented reality and virtual reality features to enhance the shopping experience.
SoftBank-backed e-commerce firm Meesho is also leaving no stone unturned to ring in the festive season with the launch of its flagship ‘Meesho Mega Blockbuster Sale’ from October 6 to October 13. Recognizing the relentless efforts of the employees, the company arranges for relaxation in more ways than one. Special lunches, breakfasts and dinners are served in between busy working hours not only for a much needed break but also to rejuvenate each Meeshoite or employee to push the boundaries and set new standards.
A mock-up of the market was created with selected products from different parts of the country to reflect the vibrant energy of entrepreneurship while displaying a wide selection of products. From nail polish and tattoo stations to foot massages, there were several opportunities to relax and gather at the same time to celebrate each new record being created.
“We are delighted with the outstanding response to our mega-blockbuster sale. In particular, tier 2, 3 and 4 cities account for 70 percent of orders,” said a Meesho spokesperson. “Small business participation increased, with 60 percent of sellers coming from Tier 2+ cities and beyond.”
Meesho said leading categories such as footwear, fashion accessories, and home and kitchen garnered more than 15 orders per second. Top selling products include sarees, watches, Bluetooth headsets and toys.
What happens at the headquarters of e-commerce companies
Amazon:
War rooms equipped with gourmet food, snacks, energy drinks, tea/coffee and bean bags
The Xperience Arena allows customers to experience the products.
Pick up and drop off from office
Teams are provided with customized jackets
Flipkart:
Fully stocked pantry; pavilions with different cuisines
Music sessions, show games
“Wishmaster Rally flag-off” featuring delivery partners
Michaud:
Employee tattoo station for casual breaks
Panipuri (snack) and arranging lunch in the employee break area
Fellowship and fun during the Mega Blockbuster Sale.