Both saw increasing demand from smaller towns especially bucking the overall trends of a slowdown in the economy.
With other horizontal rivals like Paytm Mall, ShopClues and Snapdeal staying away from aggressive discounting, both Amazon India and Flipkart are expected to increase market share during festive sales, which are also likely to reflect in the annual numbers.
“In 2014 and 2015, it was still a four-way battle for market share. Now, it is 80-85% between Flipkart and Amazon India during the festive sales,” said Satish Meena, senior forecast analyst at Forrester. The research firm had given Flipkart Group a 38.3% share, while Amazon India had 31.2% for 2018, taking the total share to about 70%.
Even as the two firms increase their overall grip on the market, Amazon India said it had the highest gross sales share of 46%, citing Nielsen Research of 190,000 digital users. Amit Agarwal, SVP and India head for Amazon, also said the firm has taken a lead in the key smartphone category during the festive sales, which accounts for 40-50% of the overall e-tail market in India. “Gap on transacting consumers and order they place has been growing year-on-year. Gap on total purchase value because of higher ASP categories has been bridged completely,” he told TOI.
While a Flipkart spokesperson declined to comment on market share, a person close to the e-tailer claimed the firm had sold three-times the number of smartphones as compared to Amazon India.
Officially Flipkart said that smartphone brands saw more than two times growth as compared to last year, Amazon India claimed a 15 times growth.