The newly introduced goods and services tax (GST) will be rolling out from July 1st 2017, and besides other sectors, it will have considerable effect on the textile market. As per the rates announced by the GST Council, apparels and garments priced more than INR 1,000 will be taxed at 12%, while those below it will be charged 5% tax. India’s largest online retailers, Amazon and Flipkart have recognized these impending reforms and have announced up to 80% discount on apparels and furniture.
Flipkart Announces Fashion Days and Matchmaker Deals
Flipkart Fashion Days sale has already began on June 10 and will continue until the weekend (June 18), trying to clear out stock before GST kicks in. Matchmaker deal from Flipkart aims to inspire customers who are unsure of next fashionable look. In addition to these two, Flipkart has also launched the concept of Brand Stock Exchange, wherein products from leading brands will be offered at higher discounts throughout the day.
Moreover, consumers can also indulge into “Guess the Brand” quiz, in which they can identify brand logos to win prizes. ‘Bid n Win’ contest is also available for the 9 day period, wherein lowest bidders will win prizes. Flipkart’s recent acquisition, Snapdeal, also ran ‘Grand Unbox Sale’ before the deal was materialized.
Amazon Offering Premium Brand Products with Discounts
Amazon, the biggest name in the World when it comes to ecommerce, has premier brands like Reebok, Puma, Tommy Hilfiger, Indigo Nation, and United Color of Benetton, offering a minimum of 50% off on clothing and accessories. Amazon Prime members have been given added discounts for their loyalty to Amazon.