With apparel manufacturers trying to liquidate old stock ahead of the new GST tax regime, e-commerce companies like Amazon India, Myntra and Jabong are expecting blockbuster sales this weekend. Flipkart firms Myntra & Jabong will go head on with Amazon India for superiority in the fashion category with their end-of-season sales this weekend.
Amazon has also said that it will open 12 temporary physical stores in the country’s biggest tech parks in Bengaluru, NCR and Mumbai to popularise its fashion sale event coming up this weekend.
“We have tied up with the biggest tech parks in the country to promote our fashion sale and give youngsters an opportunity to step out and experience fashion at physical outlets,” Arun Sirdeshmukh, head of Amazon’s fashion business, told the Times of India.
Flipkart which is currently the undisputed leader in the fashion category with its two fashion subsidiaries Myntra & Jabong is expecting its fashion e-tailers to dominate the sales this weekend.
Myntra said it expects to see a 25-fold jump in daily sales during its ‘End of Reason’ sale to be held between June 24-26. Over 1,800 brands will participate in the three-day sale, offering discounts of 50-80 per cent like that of Amazon India.
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“Our ‘End of Reason Sale (EORS) gets bigger and better with each passing season. The sixth edition will be the largest yet and will see Jabong also participate,” Ananth Narayanan, CEO of Myntra and Jabong, said in a statement.
“We expect about 45 per cent growth over last year and 25X jump in revenues from what we do on an average day,” he said.
With GST, the taxation structure and prices will change from July 1 so the sellers are offering high discounts which will benefit the end of season sales on e-commerce firms. GST Council has decided to tax man-made apparel up to Rs 1,000 at 5 per cent, while those costing above Rs 1,000, will attract 12 per cent.
(Source: Fashion Network)