The Hidden Economics of Mega Sales Events - Deepstash
The Hidden Economics of Mega Sales Events

The Hidden Economics of Mega Sales Events

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Why Discounts Are More Than Just Deals?

Why Discounts Are More Than Just Deals?

  • Driving Urgency and Excitement: Discounts (up to 70% on fashion and 30-40% on appliances) aren’t just random—they trigger an emotional rush, pushing shoppers to act fast.
  • Creating Consumer Habits: Over time, these events train shoppers to wait for the next big sale, a behavior known as strategic waiting. While great for customers, this forces retailers to offer deeper discounts, squeezing profit margins.

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PATRICIA FRIPP

You don’t close a sale, you open a relationship if you want to build a long-term, successful enterprise.

PATRICIA FRIPP

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The War of Discounts: Flipkart vs. Amazon.

The War of Discounts: Flipkart vs. Amazon.

  • Who Wins? The Consumer. Who Pays? The Retailer: In the battle for market dominance, platforms slash prices. For instance, during one event, Flipkart offered discounts on 54% of its products compared to Amazon’s 26%.
  • How Can They Afford It?: Many platforms rely on venture capital funding to absorb short-term losses in exchange for loyal customers. But as funding tightens, the question looms: How long can this last?

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Global Trends Shaping Local Sales.

Global Trends Shaping Local Sales.

  • Black Friday Meets India: Indian platforms borrow global concepts like Black Friday to clear inventory and attract new customers.
  • Tech-Powered Shopping: AI tools personalize recommendations and make flash sales irresistible.
  • Multi-Channel Domination: Online and offline promotions ensure deals are everywhere, maximizing their reach and influence.

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What’s the Catch?

What’s the Catch?

While these sales rake in short-term revenues, they raise concerns about profitability and sustainability. The constant price wars and heavy discounting may not be a long-term win for retailers.

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KEVIN STIRTZ

Every contact we have with a customer influences whether or not they’ll come back. We have to be great every time, or we’ll lose them.

KEVIN STIRTZ

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MARK HUNTER

It’s not about having the right opportunities. It’s about handling the opportunities right.

MARK HUNTER

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IDEAS CURATED BY

CURATOR'S NOTE

Have you ever wondered why e-commerce giants like Flipkart, Amazon, and global platforms pull out all the stops for events like Big Billion Days, Great Indian Festival, and Black Friday? It’s not just about discounts—it’s a calculated strategy balancing consumer psychology, competition, and market economics. Let’s break it down.

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