Is it too early to talk about it? Is It? Not Really! Time is running out!
To a shopper, it may seem like a couple of days of sale but for brands the preparation begins at least a month early, we have already entered the festive season followed by a mega season sale on Amazon, Flipkart, and Myntra building up to the Diwali Weekend. Every brand must be aware of who, when, and where to target and what their competitors are up to. The path to score big on sale event season is not easy.
Black Friday sales globally broke records in 2022, shoppers in India increased their orders by 65 percent as compared to 2021 and their spending by 64 percent during the sale week compared to the usual period. And new milestones are expected to be set in 2024.
So, what are we waiting for let’s dive deeper to understand the challenges on event days and how brands can make optimal use of these opportunities during the sales season and beyond.
Identify the event days to target
Every eCommerce platform has different reach and preferences. Knowing where you more picked up and where you need to target is key to optimizing your marketing strategies. Event days like Black Friday and Diwali sales witness a rapid increase in order volume. Brands need to identify the gaps in the market during these event days and target ads & promo offers to reach new shoppers. Every platform has different shopping patterns and different event days, therefore brands need to keep up with platform-specific requirements.
Every year consumer activity is dispersed more evenly throughout the sale period and is less focused on just Friday. A lot of companies extended the sale period to include the days leading up to and following Black Friday till the following Monday known as Cyber Monday. Even Indian festive season sale runs before the Diwali week with product expected to be delivered before Diwali.
Shoppers are always eager to take advantage of the limited-time deals, which results in a higher number of orders within a short span of time. Brands need to ensure their systems can handle the increased load and that their logistics are well-equipped to manage such a surge in orders.
Amazon Great Indian Festival 2023 witnessed a record 9.5 crore customer visits within the first 48 hours. 80 percent of the shoppers were from non-metro cities. Source: Amazon India
Match product demand with Order Fulfilment
One of the critical aspects of these event days is ensuring efficient order fulfillment. Brands need to ensure that they have enough stock available in their warehouses to meet the increased demand during the sales period. Having the right amount of inventory is crucial to avoid stock-outs and ensure customer satisfaction. Also maintaining a well-stocked warehouse is essential to cater to the surge in orders during these events. Brands need to anticipate the demand and stock their warehouses accordingly to prevent any inventory shortages.
Keep Track of In-stock and out-of-stock items:
Brands must keep real-time track of their stock status, in-stock product availability tracking, and monitoring when & where the products are going out of stock. The stock situation is key during the festive season. Brands must keep track of the trends to set promo offers and match stock to meet expected demand.
Monitor Price & Promos trends:
Brands must be aware of key trends across marketplaces and what competitor brands are targeting. For example – In 2022, low ticket purchases and demand for unbranded fashion products from Tier-II towns and beyond propelled Meesho ahead of Amazon in terms of order volume (Source: Redseer Report), but Amazon sold items of higher values during the same period with massive rise in numbers. Flipkart and Amazon together clocked 88% of $5.7 Billion GMV during the first week of the festive season. With strong positioning in the fashion segment, the likes of Myntra and AJIO earned good numbers.
Finding the right balance between pricing and volume is crucial. Offering attractive discounts and deals can drive higher sales volumes, but brands need to ensure that they don’t compromise their profitability. Strategic pricing strategies can help achieve this balance.
Keep Track of Industry Trends
The success of these event days often relies on the performance of specific product categories. In this context, mobile phones have consistently been a leading product category during festive season sales. They attract a significant share of the Gross Merchandise Volume (GMV), indicating strong demand. The fashion segment also plays a substantial role in driving sales, appealing to shoppers looking for clothing, accessories, and related products. For example, in the consumer durables industry, products like electronics and appliances see increased demand during these events. Similarly, the gifting industry, which includes items like cookies and chocolates, experiences a boost in sales as people often buy gifts for their loved ones during festive seasons.
Optimize Sponsored Banner (Season specific): eCommerce ad banner performance is key to upswing sales during the festive season. Brands must keep track of banner keyword performance, display targeting, and category targeting. Using season-specific banners and advertisements helps brands grab the attention of shoppers who are actively looking for deals during these events. Ensure your banner theme and keywords are compelling and drive more traffic to their online stores.
The eCommerce event days open new opportunities for brands to boost their sales and engage with customers. This is the moment when brands also extend their reach and are able to attract new shoppers. Identifying gaps in competitors and taking timely advantages is key to excel in the competitive landscape. Also, strengthen your strategies with a data-driven approach. Business intelligence gives brands a much-needed edge during aggressive shopping bonanzas.
Proper planning, inventory management, effective pricing strategies, and appealing marketing campaigns are essential to making the most out of these opportunities. mScanIt, digital commerce intelligence can pave the road map to navigate through the challenges of season sales and beyond. Actionable insights and in-depth analysis on PIs (Key Performance Indicators), availability, pricing, keywords share, Product detail page content, reviews, and ratings vis-a-vis competition can give brands a competitive edge for the season. The success of these events depends on catering to customer demands, optimizing operations, and offering enticing deals on popular product categories.