Patym Allocates INR 1,000 crore for Promotions, Cashbacks, and Marketing this Diwali

Published Date : Sep 04, 2017

Paytm Mall has big plans for the upcoming festive season in India. The online payment portal that has taken the nation by the storm since last year’s demonetization move intends to deploy some brilliant marketing strategies. Paytm Mall has allocated a budget of INR1,000 crore for promotions, cashbacks, and marketing between the months of September-October 2017. The payment portal intends to compete with the likes of Amazon India and Flipkart with its mammoth budget. Forrester stated that this budget is three times more than that of Snapdeal, Amazon India, and Flipkart spend a year ago.

Paytm to Bring in another 5,000 Brands to its Catalogues

According to a senior research analyst at Forrester, the three big online retailing companies spent about INR250-300 crore a year ago for promoting their festive sales. This year will also see Amazon and Flipkart spending big amounts on promotions. Paytm already has about a 1,000 brand stores under its umbrella and about 15,000 brand-authorized retailers. The company now intends to add another 5,000 prominent brands and retailers to its list before Diwali.

The COO of Paytm Mall stated that this festive season several online retailers are working toward encroaching on businesses of actual shops with special offers and discounts. Thus, Paytm intends to collaborate with neighborhood shops to allow their customers special offers through using mobile technology.

Analysts state that Paytm is a tough competitor to Flipkart and Amazon when it comes to consumer electronics and appliances. However, the other two online dealers have a lead in the market when it comes to fashion due to exhaustive catalogues and better logistical capabilities. Paytm is aiming at earning USD4 billion in terms of gross merchandise volume by the end of 2017.