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Amazon India announces sale for fashion, handloom ahead of FDI policy deadline

Published
today Jan 15, 2019
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As India’s top multi-brand e-commerce platforms gear up to face the upcoming foreign direct investment (FDI) norms that could see them having to fully reassess their business models, Amazon India has announced a sale to boost revenue ahead of uncertainty.

Amazon India meets certain times with a sale - Amazon India- Facebook


Before the deadline to comply with the Department of Industrial Policy and Promotion (DIPP) FDI policy on February 1, Amazon will hold a large scale sale with a focus on handloom and fashion products as well as electronics from January 20 (19 for Prime members). Brands that Amazon India has promised discounts on include Puma, Bata, Vero Moda, and Arrow among others. 

Amazon India private labels will also feature heavily in the sale. The new FDI policy clarification does not allow multi-brand e-commerce platforms to sell products in which they have an interest. This appears to include private label brands, a large part of both Amazon India and Flipkart’s fashion business model thanks to their lower logistics costs and high profit margins. Although details remain unclear, Amazon India appears to be gearing up for the worst.

“The Amazon Great Indian Sale will have great deals across a wide range of products including smartphones, consumer electronics, fashion, home and kitchen, large appliances, daily essentials and more,” said the business’ vice president of category management, Manish Tiwary, in a statement. A popular trend in online sale events, Amazon India has also partnered with HDFC Bank to give an extra 10 percent to customers.

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