Selling Flash: flash sales become the norm for digital marketplaces.
Times of India reports that after selling over 2 million smartphones through flash sales in six months and over 60,000 Maggi kits in just 5 minutes, Snapdeal betting big on the 'flash sales' model for 2016. "While the 'flash sale' model was introduced more out of compulsion, it has turned out to be a winning strategy," said Karan Khara, VP strategic alliances, Snapdeal. The company plans to offer products across categories in the 'flash' format in the upcoming months. Snapdeal forayed into flash sales when they faced constraints with supply in early 2015.
For products such as smartphones that have substantial amount of pent up demand, selling the product through normal sale created logistics constraints for the e-commerce company. Its first flash sale with Micromax Canvas Spark in April 2015 resulted in sales of 20,000 units within 2 minutes of commencement of the sale. The resounding success led to another 25 flash sales in six months for Micromax alone. Other smartphones from brands like InFocus, Xolo and HTC were also sold through the flash sale model on Snapdeal in subsequent months. "Flash sales acts as a trigger to release pent up demand in the market," said Khara. "It also helps us predict demand so as to align the back end shipping and logistics, he added.