Amazon, Flipkart start festive battle: Draw up sales strategy in war rooms

On Saturday night, hundreds of people grooved to the songs and music of singer  Kailash Kher and his Indian fusion band Kailasa, which had come to perform at a venue near the World Trade Center (WTC) in the northwest neighbourhood of Bengaluru. But inside the WTC, which houses the headquarters of Amazon India, Manish Tiwary, vice president and country manager, India consumer business, Amazon, is holed up in the war room and anxiously looking at the large display screens. He is analysing the traffic that the e-commerce firm is witnessing for its flagship festive sale, the Great Indian Festival (GIF) and to strategise and make informed decisions.

As the clock struck 12, the online platforms of Amazon and Flipkart as well as Meesho, and Myntra exploded. Millions of shoppers went online to grab the special deals on offer as the e-commerce firms started hosting their biggest festival season sales during the weekend.

“All of us haven’t slept from last night. It is a very high-intense activity,” said Tiwary in an interview at one of the war rooms at WTC. “You can prepare as much as you can. But it is like taking board exams and you are always tensed.”

Dressed in a black Amazon jacket, jeans and sneakers, Tiwary was seen pacing to multiple war rooms in the building, which run round-the-clock. They are equipped with large screens that display different dashboards of data and analytics. This includes website traffic, sales metrics and products that customers are shopping for.  War rooms are also equipped with gourmet food, snacks, energy drinks, bean bags and door desks for employees to kick back and collaborate. Amazon has been preparing for the sale event for 10 months.  The firm also has war rooms across different countries and cities such as Hyderabad, Seattle, Vancouver, Luxembourg and Dublin which are focused on India during the month-long GIF event.

“We are witnessing a huge demand, which is awesome, but it is also scary, as you don’t want anything to break down,” said Tiwary. “The mood was different a few quarters back. There were murmurs about inflation and slowdown. But this Diwali is different. I don’t recollect such a positive consumer sentiment compared to the last 4 years. We think the Diwali sale this year would be the biggest and by a (significant) margin.”

Indeed, e-commerce retailers are expected to garner sales worth Rs 90,000 crore this festive season, 18-20 per cent higher than last year, according to a report by Redseer Strategy Consultants. This will be driven by about 140 million shoppers who are expected to be transacting online at least once during this festive month.

Amazon India has created more than 100,000 seasonal job opportunities across its operations network for the Indian festive season. The new hires will pick, pack, ship and deliver customer orders safely and efficiently. New hires also include customer service associates. The company has fulfilment centres spread across 15 states, offering 43 million cubic feet of storage space for seller inventory. This benefits over 1.3 million sellers in the country. Amazon India has sortation centres in 19 states, along with a network of close to 2,000 Amazon-operated and partner delivery stations. Also, it has 28,000 ‘I Have Space’ partners and thousands of Amazon Flex partners, who would deliver products to customers across the country. The company is also leveraging partnerships with Indian Railways and India Post, as well as Amazon Air, the cargo airline that the e-commerce firm launched this year to transport packages.

Manish Tiwary, Country Manager, India Consumer Business, Amazon India in a war room at Amazon India HQ in Bengaluru for Amazon Great Indian Festival 2023

Some 30 kilometres away from Amazon’s main office in Bengaluru, at the HQs of Walmart-owned Flipkart on Outer Ring Road, the atmosphere is electric. Thousands of Flipkart employees, or ‘Flipsters’, gathered to celebrate and kick off the 10th edition of the company’s highly anticipated The Big Billion Days (TBBD) 2023 from October 8 till October 15. A music band has been invited to cheer up employees. Hundreds of employees were seen beating small drums together as well as waving light sticks to celebrate during the event. In addition to hearing from the organisation’s leadership, they were joined by sellers who spoke about the incredible impact of a shopping event like TBBD. There was also a traditional ‘Wishmaster Rally flag-off’ in which delivery partners participated, besides other fun engagements. For Flipkart and its over 500-million-strong customer base, the company said the festival is not just a shopping event; but is a collective effort of lakhs of individuals and small enterprises to deliver value to every Indian. 

“There have been immense learnings for all of us from these 10 years and every year, it (TBBD) just gets better for our customers, sellers and partners,” said Hemant Badri, senior vice president, head of supply chain and customer experience, Flipkart Group, in an interview. “The preparation has been phenomenal in terms of infrastructure readiness. This includes adding new facilities and last-mile centres in Tier-2 and Tier-3 regions and we are doing a lot of automation.”

Flipkart is generating over 100,000 new job opportunities across its supply chain, including fulfilment and sortation centres and delivery hubs. These seasonal jobs include local kirana delivery partners, women and persons with disabilities (PWDs). This year, Flipkart has scaled its supply chain with last-mile distribution hubs and large-scale fulfilment centres, strengthening its reach in Tier-III cities and beyond. It has added more than 19 lakh square feet of space across Uttar Pradesh, Gujarat, Bihar, Punjab, Rajasthan, and Telangana. The e-commerce firm is also planning to deliver more than 40 per cent of shipments during the festive event through its Kirana delivery programme. Flipkart has also come up with various technological interventions. Among them is an AI-powered conversational assistant, ‘Flippi’, which will replicate the in-store experience with expert guidance and a simplified shopping process. It has also integrated augmented reality and virtual reality features to enhance the shopping experience.

SoftBank-backed e-commerce firm Meesho is also leaving no stone unturned to tap the festive season with the launch of its flagship ‘Meesho Mega Blockbuster Sale’ from October 6 to October 13. Recognising the relentless efforts the employees put in, the company arranged for relaxation in ways more than one. In between the busy work hours, special lunches, snacks, and dinners are being served not only for a much-needed break but to rejuvenate every Meeshoite or employee to push boundaries and set new benchmarks.

A marketplace mock-up with curated products from different corners of the country is set up to reflect the vibrant energy of entrepreneurship while displaying a wide selection of products. From nail paints, and tattoo stations to foot massages, there were several avenues to unwind and gather at the same time to celebrate every new record that is being created. 

“We are delighted by the exceptional response to our Mega Blockbuster Sale. Particularly, tier 2, 3, and 4 cities accounted for 70 per cent of orders,” said a Meesho spokesperson. “Small business participation increased, with 60 per cent of sellers coming from tier 2+ cities and beyond.”

Meesho said leading categories such as Footwear, Fashion Accessories as well as home and kitchen garnered more than 15 orders per second. Top-selling products included sarees, watches, Bluetooth headphones and toys.

What is happening at the HQs of e-commerce firms

Amazon:

War rooms equipped with gourmet food, snacks, energy drinks, tea/coffee and bean bags

Xperience Arena lets customers experience products.

Office pick-up and drop service

Teams provided with customised jackets

Flipkart:

Fully-stocked pantry; kiosks with different cuisines

Music sessions, game shows

‘Wishmaster Rally flag-off’ in which delivery partners participated

Meesho:

Tattoo station for employees for occasional breaks

Panipuri (snack) and lunch arrangements in the breakout area for employees

Camaraderie and fun during the Mega Blockbuster Sale.