<div>Certainly, online shopping is getting bigger than ever before in India with a whole new generation of internet-savvy consumers with deep pockets. But as the thrill of click-and-shop and daily heavy discounts overwhelm buyers, traditional shops and malls - the brick-and-mortar stores — are left fuming.</div><div> </div><div>Snapdeal, the second-largest online retailer, is holding an electronics sale on Monday (12 October), offering discounts on smartphones, laptops, other electronics and home appliances. India's largest online retailer Flipkart will go head-to-head with Amazon India this week for online sales of smartphones, tablets, clothes and other products.</div><div> </div><div>Flipkart is looking to sell goods worth $500 million, or Rs 3,250 crore, during the five-day 'Big Billion Days' sale, sources privy to the e-tailer's plans told the <em>Times of India</em>. Most analysts pointed out that Diwali sales would be key for the market to determine which one among Flipkart, Amazon and Snapdeal is likely to take the pole position. "It's a very important period for e-tailers and a lot would depend on how Indian consumers behave this year after the not-so-great experience they had last year," Harish H V, partner at Grant Thornton told the newspaper.</div><div> </div><div>However, the last year success of festival sale by e-commerce companies had generated a huge controversy with retailers blaming them of "predatory pricing". For e-commerce giants such as Amazon, Flipkart, Snapdeal, Jabong and ShopClues, which are involved in cut-throat competition to grab market share, Dussehra and Diwali are something they can't ignore.</div><div> </div><div>Be it the thrill of snagging a Dell laptop worth Rs 33,000 for just Rs 24,490 or an iPhone 5S worth Rs 45,000 for just Rs 28,500, marketers are calling this online shopping madness a tipping point for the retail industry. </div><div> </div><div>As online shopping grows, experts believe the discount culture will only increase. Analysts say India is not a pioneer in discounted sales. In the US, heavy discounting and the coupon system have been in practice for decades and even today families queue up to get even the smallest of discounts. This basic philosophy applies to India too. </div><div> </div><div>Big Indian retail players like Reliance, Tata and Future group are working on online initiatives which could change the rules of the game, and with that, the advantage consumers have been enjoying. </div><div> </div><div>According to a Deloitte report, digital currently influences 21 per cent, or Rs 60,000 crore, of the over Rs 2.8 trillion of in-store organised retail sales in India. The mobile influence factor is as high as 18 per cent, with smartphones being the devices of choice for accessing information while on the go or in-store.</div><div> </div><div>Harminder Sahni, founder, Wazir Advisors, a management consulting firm specialising in consumer and retail segments, feels that in India, companies have always enjoyed the lack of transparency in the supply chain management to charge unrealistic margins. That is what is being challenged by online players today who offer deep discounts, and the 40-50 per cent of the retail price that was going into the supply chain is now being eliminated, according to a report in <em>Outlook</em> magazine.</div><div> </div><div>Discounting during sales is not a new phenomenon and it helps sellers attract a larger customer base from time to time and grow their business. Of late, online retailers are following the new trend of loss leader pricing where they sell a small quantity of a product at a deep discount to attract customers and when that runs out, they expect customers to buy other products at less or no discount. </div><div> </div><div>According to a report in <em>The Economic Times</em>, marketplaces are courting sellers through multiple schemes and incentives to reach their targets for on-boarding sellers by the year-end, and prepare them for possible hiccups while processing such large volumes of orders. Online marketplaces are also trying to ensure that this Diwali is a happy one for merchants by giving up on commissions and reducing the pay cycle for sellers. </div><div> </div><div>For the consumers, the good times are here to stay. Even the Competition Commission of India has said that as long as the consumer benefits, nothing needs to be done on the discounts. According to reports by Google India, Technopak Advisors and E-tailing India, the country's online retail market is expected to be worth $75 billion by 2020 from about $5 billion now.</div>
