The Reality of Big Billion Days & Great Indian Festival

“SALE! SALE! SALE!” Sounds familiar? Remember those days when companies used such hook-lines to darw our attention? Things have changed completely now. Most companies use different ways to hook us in with massive sales and discounts.

Discounts are no longer intrinsic to festivals. With biggies such as Amazon & Flipkart dipping their hands into this business, they can turn a regular day into one that is worth celebrating. Such is the power of discounts! It can make the universe a little bigger for you.

Big Billion Days (Flipkart) and the Great Indian Festival (Amazon) are the biggest shopping festivals in India, promising massive discounts and deals.

Curious about why these big giants come up with discounts & how they profit from giving us rebates? Stay tuned!

What Makes These Festive Sales So Big?

Sometimes, what you see is not what it is, and similar is the situation with discounts.

a. A Game of Profit

It's important to understand how the selling price is different from the Manufacturing cost.

[Profit = Selling price - Manufacturing cost (including other costs)]

Let's take an example to understand this. Suppose you purchased your favourite Jeans priced at ₹1,000 at a discounted price of ₹800; you got a discount of 20%. Woohoo!

Now, let’s see the other side of it. Suppose the manufacturing cost is ₹500 per pair of jeans, and it is listed at ₹1000. So, the seller is earning a profit of 100%, but due to bulk orders during the sale, the manufacturing cost is reduced to  ₹400 per jeans and listed at the same price of ₹1,000 but with a discount tag of 20%. Now, the selling price of your favourite jeans is ₹800 & the seller is still managing to get a 100% profit.

Cheeky right? Well, this is business :)

Is It Really Urgent?

“The offer ends in less than an hour.” 

“You have just an hour left to grab the next best deal, So hurry!”

The above lines are enough for you to search for that favorite piece of clothing, add it to the cart, and press the “order now”. That’s how urgency is created to make the deal more exciting. Even though the deal won't end in an hour, yet we end up thinking that it will. This urgency tactic is used throughout the year and takes new heights in festive sales.

b. Burn Millions to Earn Billions

Remember back in 2016, when the 4G internet was raining all over India? Everyone was in the queue to grab that SIM to experience the fastest internet. Well, JIO is the perfect example of this strategy. These big giants offer heavy discounts on products to gain more and more customers. Similarly, big companies like Amazon and Flipkart offer heavy discounts to attract new customers and activate the cravings to shop for existing customers. 

No doubt that these companies sell the products at a loss. However, they know that once the customers get addicted to buying products from them, they (companies) will generate profit in the long run.

After all, no one does business for charity, and there is no charity without business. 

c. Terms & Conditions Applied*

“Buy 3 get 1 Free”

“Offer valid on the purchase of ₹4,999.”

“Minimum purchase required”

 All of these come under specific terms & conditions, another strategy to make customers buy more and the customers always want to have something extra and end up buying 3 shirts to get the fourth one free. Thus, the “Great Indian Festival” or the “Big Billion Days” do not imply savings or earning of billions for you, but rather for the giants such as Amazon and Flipkart. It’s a legit blockbuster show for them. 

Just to give you a numerical perspective, Flipkart and Amazon swooped in approximately ₹26,000 crores during their flagship festive season sale events along with a 3.2X increase in digital footprint in the mobile category and recorded sales of more than 16 million products from across 40,000 brands in the year 2020. Wowzah! 

But don’t they say, “Customer is King”? So let’s see how useful these deals are for customers.

Are These Sales Really Beneficial for Customers?

The ultimate question, right? We have seen how companies use unique strategies to attract customers, which raises a valid question: “Are these discounts really beneficial for us?” Well, it depends.

Confused? Let’s find the answer together.

One Side of the Coin: The Good

Let's first have a look at what's really good in these sale days.

• Genuine Discounts: You can find some genuinely good deals on certain products, especially during the initial flash sales. Brands often offer exclusive discounts in collaboration with these platforms.
• Wider Selection: With a vast product range, you are likely to find what you're looking for at a potentially lower price.
• Convenience: The convenience of online shopping with easy payment options and home delivery is unmatched.
• Entertainment Factor: The festive atmosphere with exciting offers, contests, and gamified elements can make shopping fun.

Every one of us needs different products and services in our day-to-day life, and of course, we have to pay for them. So, if we are getting our essentials at a discounted price, then why say No to it?

But before you think it’s a YES, let's see!

The Other Side of the Coin: Not-So-Good

Now it is time to look at the hidden side of these sale days.

• Inflated Prices: Some sellers might inflate prices before the sale to create a bigger discount illusion. It's crucial to compare prices across platforms and with offline retailers.
• Confusing Deals: The sheer volume of offers and complex discount structures can be overwhelming, making it difficult to identify true bargains. Be wary of deals with hidden conditions or bundled products.
• Fake Discounts: Not all discounts are what they seem. Some products might have minimal or negligible reductions, so research is key.
• Focus on Volume Over Quality: The emphasis on high sales volume might lead to a push for low-quality products at seemingly attractive prices.

If you are buying something just because it is available at 90% off or because you wish to show it off, buying it makes no sense! It’s like smoking to look cool! Buying unnecessary things is a huge waste of money. So, as you are now aware of both sides of the game of Discounts, it's up to you to buy or not to buy. But make sure you get the things you really need.

Rest is your call :)

Tips for Smart Shopping During Big Billion Days:

Don't fall prey to the marketing hype. With a bit of research and smart shopping strategies, you can still find good deals during Big Billion Days.   

a. Do your research: Track prices of desired products beforehand to spot genuine deals. Compare across platforms and with offline stores.

b. Focus on needs, not wants: Don't get swept away by the festive mood. Only buy what you genuinely need and avoid impulse purchases.

c. Read reviews: Before buying, read product reviews and check seller ratings to avoid low-quality products.

d. Beware of hidden costs: Factor in delivery charges, extra warranties, and processing fees to get the true final price.

e. Utilise price comparison tools: Leverage online tools and browser extensions that help compare prices across platforms.

f. Set a budget: Set a spending limit and stick to it. Don't get tempted to overspend due to attractive offers.

The Bottom Line

We all know that “flat 60% off,” “up to 70% off,” and “buy 2 get 1 free” are among the many delights we look for while shopping. Also, have you ever noticed that in reality, we have discounts all year long in the form of “End of season sales,” “Big Billion sales,” festival sales, clearance sales, the “Bonanza” sales, and whatnot?

The motive behind this article is to make you aware that business is not a charity, and these companies might work in ways which we may or may not understand. So always remember both sides of the coin discussed above.

Share this with a shopaholic friend of yours and let us know in the comment section about the best deal you got from these festive sales.