Wed Oct 19 2022
3 min read
The festive season is here and so are enormous opportunities for brands across categories to capitalise on the season of big sales. The total online retail GMV (Gross Merchandise Value) in 2022 is $68 bn and consumer electronics is projected to be the largest D2C segment in the Indian market, with an estimated market size of $30.6 bn as of 2022.
This year, despite declining customer sentiment due to market downturn, layoffs, and rising interest rates, the sales figures so far for both online and offline are encouraging. In 2021, over 8.5 lakh Amazon sellers and more than 3.75 lakh Flipkart sellers participated in the sales. In 2021 alone, e-commerce players clocked a GMV of $9.2 billion, a 23% increase compared to 2020, according to data released by research firm RedSeer.
With Amazon, Flipkart, Myntra, Tata Cliq, and other players in the e-commerce industry gearing up for the festive season, is your brand ready for the surge? From your financial planning to your growth strategy, here are 4 solutions that you can utilise to make the best out of this festive season:
Brands aiming to go big during the festive season must do a cash flow analysis that accounts for increased inventory projections and hence determine if there is a need for capital. If there is one, look into fast and flexible financing options, such as Revenue Based Financing that would provide the fuel that would help to generate extra festive revenue.
A good example of effective inventory planning is the convenience store chain The New Shop who analysed their data from previous seasons to quantify the projected inventory requirement at 10x of regular requirement. In order to build up the required inventory volumes, the company raised short term inventory financing through Revenue Based Financing to match the duration of their inventory cycle for the sale. This approach allowed the company to stay cash flow positive and increased its revenue by an eye catching 4900% in a little more than a year!
2. Elevate your customer delight
SMOOR Chocolates, India’s leading gourmet chocolate brand, banks upon the strategy of humanising their brand through a touch of personalisation during the festive season. Owing to the Indian sentiment during Diwali, the brand which is originally European in its style and flavour adapts a more indigenous approach. They do this by mixing Indian dessert flavours with the western palate.
Such festive activities have helped the brand generate as much as half of its annual revenue in just one month.
3. Embrace an omnichannel strategy to unlock growth momentum
If you are a business owner, connecting with your customers over multiple channels is a proven way to improve conversion and loyalty.
An example of an impactful omnichannel marketing is that of CaratLane. Early this year, the company announced that it recorded its best quarterly revenue on the back of a strong growth momentum witnessed in the festive season. The revenue growth was largely driven by improvement in marketing efficiencies, leveraging the omni-channel sales network and strong product launches. By integrating in-person and online stores, running targeted ads by segmenting the audience, and utilising different mediums such as email, SMS, WhatsApp, and social media, CaratLane also tapped into tier 2 cities that came off as a strong market for the company.
4. Diversify your festive discounts
Discounts and sales during the festive season are the most common way to gain customers. Also, consumers usually pile up their piggy banks for ‘festive sales’ during this season. Make the most of this strategy for your brand.
Hoovu, an online flower retail service offering puja flowers at home delivery, opts for category wise distribution of their products across ecommerce platforms. One reason to do so is because Indian consumers love discounts and they are flooded with new products across touchpoints on all such platforms. Hoovu has seen a 20% spike 2-4 weeks before the festive season because of promotional offers on quick commerce platforms like Bigbasket, Zepto, Blinkit, among others.