Amazon and Flipkart clash over India’s ‘budget’ sensitive consumer

The keyword 'Budget' is what both eCommerce giants play around this festive season

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It’s that time of the year which both consumers and companies eagerly wait for. This quarter – October, November, December contributes to a majority of sales for most of the players across all industries – especially Consumer Goods. With Consumer Goods contributing significantly to eCommerce sale in India, it makes all sense for industry leaders like – Amazon and Flipkart to put their best foot forward – Flipkart’s Big Billion Sale and Amazon’s The Great Indian Festival are all set to roll out in less than a week’s time.

Both the companies have set aside significant marketing budgets to make themselves heard. Amazon Flipkart Festive Advertising Budget 2018However, there is something we find interesting in this year’s campaign by Amazon and Flipkart. Amongst the various communication routes that the competitors could have taken, both Amazon and Flipkart seem to talk the same language. Both Amazon and Flipkart this year talk about a sale making things available on a budget constraint. ‘Budget’ emerges to be a common keyword being used in the communication in both Amazon and Flipkart ads.

Amazon Great Indian Festival 2018 Campaign

Let’s have a look at the ads being run on TV and Digital platform by Amazon India for their Great Indian Festival 2018. The campaign talks about – Khushiyon Ke Beech Budget Na Aayega (Budget will not hold back any happiness this year’s Amazon Great Indian Festival). Amazon India had rolled out the communication in both Hindi and regional languages. The key peg though remains the same – Budget Friendly Sale.

Flipkart Big Billion Sale 2018 – Campaign

Now let’s have a look at the Flipkart Big Billion Sale 2018 Campaign. Flipkart takes an influencer led communication across all the categories. Different USPs on the platform have been communicated via more than 60 videos released featuring various influencers. Starting from Amitabh Bachchan to Virat Kohli to Deepika Padukone and anyone you can think of. Flipkart has also roped in regional influencers to get through the message. The company seem to have flushed a lot of money this year’s campaign.Flipkart Big Billion Campaign Budget 2018 Though Flipkart’s approach is different (influencer led) yet communication sounds very similar to Amazon’s ‘Budget Friendly Sale’ proposition. With the slug line – Ab India hoga budget se mukt (Now India will be free of budget constraints), it very much sounds like a part of the same campaign.

This is probably Flipkart’s heaviest campaign till date. And why not when the company is now heavily funded by Walmart. The company officially declared the value of goods sold in the Flipkart Big Billion 2016 Sale Flipkart Big Billion Sales Figures 2016. Lets see how the numbers span out this year.

Final Thoughts

  • India primarily stays a price sensitive market and it makes all sense to communicate on discounts and competitive pricing if applicable. Though it might not be the best in the long run, it looks like that’s where all eCommerce players are headed as of now.
  • Its is very likely that consumer research has popped up the keyword ‘Budget’ and therefore both the companies decided to ride upon the same.
  • We feel that Flipkart’s kids as adults ads had been working great in the past. The ads have had great recall.
  • Looping in so many celebrities might just be an overkill by Flipkart.

 

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