Amazon is to open 12 temporary physical stores in Bengaluru which is the country’s biggest tech park along with Mumbai and NCR to hype its fashion sale event which will be conducted on this weekend.

End of season sale before GST kicks in

It is called as end of season sale by the company but still it is acknowledged that the sellers at the platform and all associated brands are seeking to finish its stock before GST kicks in, since with GST the taxation structure as well as prices will change.

Hook up with tech park

Head of Amazon’s fashion business, Arun Sirdeshmukh said that, “We have tied up with the biggest tech parks in the country and these will act as activation and promotion for our sale. For our young consumers at these parks, this will be a good opportunity to step out and experience fashion at physical outlets”.

Amazon will offer 50-80% discount

Amazon will offer almost a discount of 50-80% on 3 lakh unit across 1500 brands along with lots of other gifts and cashback offers like goodies.

Its subsidiaries and contender

Its biggest contender Flipkart, which started fashion label under the name Divastri, has lead in this vertical with subsidiaries Myntra and Jabong, who are also conducting end of the sale this weekend.

Why physical stores

Electronic segment followed by Fashion including shoes, apparel, jewellery, watches, luggage and handbags is the second biggest segment in online commerce. But it still faces several issues such as size, style and colour. Hence, the company takes initiative to open the temporary physical store.

Why sellers are interested in sale

Retailers are willing to finish its stock before GST because the stocks are already taxed on according to sales tax and VAT.
Sirdeshmukh said that, “The sellers and brands might benefit if they could sell most of the old stocks before GST begins. Company is spending heavily on television, print and digital marketing for the event”.

Amazon’s hope with the sale
Amazon hopes to get new customers with the sale. Sirdeshmukh said that, “Around a third of customers try fashion first on Amazon”.