Flash Sales – Who is buying?

According to AT Kearney’s India Luxury Review Report of 2008-09, the market for luxury products in India will be in the US$25-30 billion range by 2015 and non-metro India would account for at least US$10 billion of that.

Online flash sales seem to follow the same trend, with around a third of the business coming from non-metros:

Some quotes given below are ample proof of buying power in non-metros…

Our clientele can basically be divided into three categories. The metros, the tier 2 – tier 3 cities and then the clients from abroad. The second category has the highest number of members,” said Nilesh Saxena, the director of the luxury portal, ‘Brandmile’.

Before Valentine’s day, we received a big order for Victoria’s Secret lingerie from a place outside of Patna. One of our most regular clients is from Bhatinda. In the small towns of India, there are plenty of people who can afford the brands but don’t have access to them, and that is where our website steps in,” said Ishita Swarup, CEO and founding partner, ‘99 Labels’.

Meghna Reddy from ‘DesiCouture’ says “I was overwhelmed with the response in the first few months from places like Coimbatore, Vizag and Ludhiana.”

“To our surprise, we have orders coming from places such as Bhubaneswar, Jalandhar, Ludhiana, Guwahati, Jammu and Lucknow. Sites like ours are making luxury brands more accessible, as most of these brands don’t have stores in non-metros,” says Pearl Uppal, CEO of ‘Fashion and You’.

Recently, when ‘Fashion and You’ had a high-tea event during the Lakme Fashion Week, they invited their most valuable members to attend the event and their highest spender turned out to be a very fashionable lady from Guwahati!

These shopping clubs are an excellent example of e-tailing particularly targeting ‘middle India’ for well-known premium brands. They provide fodder for the aspirational yearnings of small-town India which have no outlet for fulfilment, until of course, online flash sales redefined how fashion and designer goods were marketed and distributed in India.

Data Sources: News Reports – Indian Express, Outlook India, New York Times, etc.

By,

Roshni Jhaveri

2011-01-24T10:41:59+00:00

9 Comments

  1. Flash Sales – Procurement « January 28, 2011 at 5:12 am - Reply

    […] 28, 2011 More on the theme of Flash Sales, which was discussed in the last two posts, here and here […]

  2. R J January 31, 2011 at 8:05 am - Reply

    When you’ll are refering to luxury products – what products it encompass? Are you’ll only refering to branded clothing, or does it also include jewelry, lifestyle products and high-end cars? Also, what are the prospects of online jewelry retailing in India?

    • escapevelocityblog January 31, 2011 at 8:45 am - Reply

      Products sold through such websites not only include branded clothing, but also branded bags and shoes, toys, skin care products, jewelry, furnishings, electronics, travel packages, pet fashions, luggage, other accessories like perfumes, sunglasses, etc.
      Fashion jewelry, semi-precious and silver jewelry is being sold at the moment, but precious-stones, gold, platinum and diamond jewelry is yet to make a foray into this.
      Cars (hi-end or otherwise) aren’t being sold through flash sale websites – this could be because a) it’s a much higher ticket item b) it’s a much more involved category where people what to test-drive the car or customize interiors or check out the head and leg room, etc. and c) car sales are typically localized
      About your question regarding prospects of online jewelry sales – continue following our blog, we do have a post planned on this topic coming up soon.

      By,
      Roshni Jhaveri

      • R J February 1, 2011 at 11:46 am - Reply

        My query was more towards what was constitued as “luxury products” in the ‘AT Kearney’s India Luxury Review Report of 2008-09’, referenced in the first paragraph of this post. Do those figures include high-end cars, big-ticket items and jewelry?

        • escapevelocityblog February 2, 2011 at 5:51 am - Reply

          Hi R J

          Sorry for the mis-understanding.

          Luxury products in the AT Kearney’s Report includes luxury products, services and assets. Categories included in the market estimation includes apparel, accessories, handbags and shoes, jewelry, watches, electronics, cosmetics & skincare, wines & spirirts as well as luxury hotels, spas and grooming services, bespoke clothing, premium real estate, high-end cars, boats and luxury yacths, etc.

          By,
          Roshni Jhaveri

  3. Flash Sales – Marketing « February 1, 2011 at 5:19 am - Reply

    […] 1, 2011 To conclude our series of posts on Flash Sales, here’s a post on how these sites market […]

  4. Detra Grune February 15, 2011 at 2:29 am - Reply

    Hey I am so grateful I found your website, I really found you by mistake, while I was researching on Askjeeve for something else, Nonetheless I am here now and would just like to say thanks for a remarkable post and a all round entertaining blog (I also love the theme/design), I don’t have time to go through it all at the moment but I have saved it and also included your RSS feeds, so when I have time I will be back to read a lot more, Please do keep up the fantastic job.

    • escapevelocityblog February 16, 2011 at 4:20 am - Reply

      Hi Detra

      Glad you liked our blog. Thanks for the encouragement.
      Do keep giving us your feedback.

      Zenobia & Roshni.

  5. Additional Info – Luxury Good Sales « November 10, 2011 at 11:20 am - Reply

    […] in January 2011, we’d also written about this in our post on Flash Sales – Who is […]

Leave A Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.