Flipkart
Product Case Study
Let's try an approach based on the Average Selling Price (ASP) of electronic goods and the seasonal surge in sales.
Identify the festive season period
In India, the festive season generally starts with Navratri and ends with Diwali, covering approximately a month.
Estimate Flipkart's yearly sales of electronics
While specific figures are not available, let's assume that electronics account for 30% of Flipkart's annual sales value. Based on the information available till 2021, Flipkart's Gross Merchandise Value (GMV) was around $15 billion, suggesting electronics sales of around $4.5 billion.
Estimate the share of sales during the festive season
During the festive season, sales are likely to surge due to numerous discounts, offers, and increased consumer spending. Let's assume that 25% of the annual sales of electronics happen during this period. That would be around $1.125 billion.
Factor in the festive season sales surge
However, the festive season is also a time when sales surge due to special deals and discounts, leading to higher volume sales but at lower prices. If we assume a 50% increase in the number of units sold, but at a 30% discount, the festive sales value would be higher by a factor of (1 + 50%) * (1 - 30%) = 105%.
So, the estimated total value of electronics sold on Flipkart during the festive season would be $1.125 billion * 105% = approximately $1.18 billion.