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E-commerce next phase – advertising and mobile apps
Posted On: 01-05-2014 00:00:00 14

As per a report in Mint, India’s top e-commerce firms including Flipkart, Snapdeal, Myntra and Amazon India are significantly increasing their advertising spend in an effort to retain customers and build improved brand awareness in smaller cities and towns . Earlier the challenge used to be getting new customers, but given the large base of consumers that is active across portals, customer retention and driving repeat purchases are also becoming large parts of the marketing task. These sites, all of which raised $50 million (around Rs.300 crore) or so in the past year, are stepping up efforts to win shoppers through marketing campaigns that advertise discounts, new products and services such as quick delivery. Online apparel and accessories retailer Myntra is planning to double its marketing spending to Rs.150 crore in the year to March. The world’s largest online retailer Amazon, which launched its India marketplace last June, has been expanding its range of offerings, adding several new products such as electronics, toys, music and apparel, apart from the books it started out with. Now, Amazon India is rolling out a mass-media advertising campaign which focuses on Amazon India’s fast and reliable delivery services across India. The campaign is live on all platforms including television, online, print and outdoors. To reach a wide audience, Amazon began its marketing campaign around the popular franchise cricket tournament Indian Premier League (IPL) and is selling IPL merchandise. They are also running a number of interesting deals and promotions across various product categories throughout the IPL season.

Advertising apart, retail sites are betting on increase sales through m-commerce. As per a report in Economic Times, mobile based transactions contribute half of all sales on Snapdeal, an online marketplace. Just a year ago mobile-based transactions were only 5% of total orders on the site. Competitor Flipkart claims to be getting about 20% of its orders from mobile applications and expects mobile users to contribute half its total sales in a year while fashion site Myntra expects mobiles to contribute 40% of its sales by end of the year.


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