Amazon India, Myntra get battle ready for fashion sales this weekend
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With apparel manufacturers trying to liquidate old stock ahead of the new GST tax regime, e-commerce companies like Amazon India, Myntra and Jabong are expecting blockbuster sales this weekend. Flipkart firms Myntra & Jabong will go head on with Amazon India for superiority in the fashion category with their end-of-season sales this weekend.
Amazon India has partnered with 1500 leading fashion brands for the sale event from June 23 to 25 with exclusive tie-ups with 25 brands like GAP, Under Armour, M&S, Michael Kors and many more.
Amazon has also said that it will open 12 temporary physical stores in the country’s biggest tech parks in Bengaluru, NCR and Mumbai to popularise its fashion sale event coming up this weekend.
“We have tied up with the biggest tech parks in the country to promote our fashion sale and give youngsters an opportunity to step out and experience fashion at physical outlets,” Arun Sirdeshmukh, head of Amazon’s fashion business, told the Times of India.
Flipkart which is currently the undisputed leader in the fashion category with its two fashion subsidiaries Myntra & Jabong is expecting its fashion e-tailers to dominate the sales this weekend.
Myntra said it expects to see a 25-fold jump in daily sales during its ‘End of Reason’ sale to be held between June 24-26. Over 1,800 brands will participate in the three-day sale, offering discounts of 50-80 per cent like that of Amazon India.
“Our ‘End of Reason Sale (EORS) gets bigger and better with each passing season. The sixth edition will be the largest yet and will see Jabong also participate,” Ananth Narayanan, CEO of Myntra and Jabong, said in a statement.
“We expect about 45 per cent growth over last year and 25X jump in revenues from what we do on an average day,” he said.
With GST, the taxation structure and prices will change from July 1 so the sellers are offering high discounts which will benefit the end of season sales on e-commerce firms. GST Council has decided to tax man-made apparel up to Rs 1,000 at 5 per cent, while those costing above Rs 1,000, will attract 12 per cent.
Questions & Answers
Q.What is driving the expectation of blockbuster sales for e-commerce companies this weekend?
What is driving the expectation of blockbuster sales for e-commerce companies this weekend?
Apparel manufacturers are liquidating old stock ahead of the new GST tax regime taking effect from July 1. This leads to sellers offering high discounts, which benefits end-of-season sales on e-commerce platforms.
Q.What initiatives has Amazon India taken to promote its fashion sale event?
What initiatives has Amazon India taken to promote its fashion sale event?
Amazon India has partnered with 1500 fashion brands and secured exclusive tie-ups with 25 brands. It will also open 12 temporary physical stores in major tech parks to popularise the event.
Q.How will the new GST tax regime affect apparel taxation from July 1?
How will the new GST tax regime affect apparel taxation from July 1?
Man-made apparel costing up to Rs 1,000 will be taxed at 5 per cent under the new GST regime. Apparel costing above Rs 1,000 will attract a higher tax rate of 12 per cent.
Q.What sales growth does Myntra anticipate for its 'End of Reason' sale?
What sales growth does Myntra anticipate for its 'End of Reason' sale?
Myntra expects a 25-fold jump in daily sales during its 'End of Reason' sale, which will also see Jabong participate. The company also anticipates about 45 per cent growth over last year.
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