Leading e-retailers getting rid of discounts

On one hand they are announcing events like ‘Big Billion Sale’ and ‘End of Reason Sale’ to woo customers with heavy discounts and on the other hand, these leading e-commerce platforms like Flipkart, Myntra and Jabong are working towards cutting down on the percentage of discount they earlier offered. Over the past six months both Flipkart and Myntra are reducing the percentage of discounts offered by them. Experts say they have reached a level where they can sustain even at the expense of losing customers.

Gurgaon-based Jabong incubated by Germany’s Rocket Internet has also reduced discounts by at least 8-10 percent over the past six months. Online companies’ move to a full-price model, according to experts, signals at maturing of e-commerce market in India.

However, the success of India's e-commerce companies largely depends on the quantum of discount they offer to attract consumers. A rise in inflation and continuous impact of economic slowdown has tremendously affected consumer spending and they are visiting retail shops on lesser occasions. At the same time, a recent Assocham study has also pointed out that they are increasingly giving preference to buying online owing to the discounts offered on brands.