Have you ever noticed that one company launches one phone with amazing specifications, which is sold by Flipkart and Amazon in the flash sales on a particular time of a particular day, and you also go to purchase that phone on the flash sale and after pressing the buy now button while buying, the phone goes out of stock?
From these flash sales, many people purchase phones with better specifications at a cheaper price, but many people are also there who want to buy a phone but fail to do so as it goes out of stock very quickly.
So let's talk about the flash sales, why companies bring up flash sales, the dark truth behind the flash sales.
So the concept of flash is not that much old, it has started 6 years ago, the first phone which was released for the smartphone market was Moto G smartphone, this smartphone sometimes used to come in the flash sales and often used to go out of stock, many people wanted to buy this phone but they were unable to buy this phone as it was often unavailable in the market. After that Xiaomi made their entry in India in 2014 and they bought their Mi 3 smartphone in India, but they didn't do the marketing properly, they just gave a social media post of it and also made some banner ads on Flipkart, and they to people that, a new phone has arrived in the market in which you're getting a great specification at a lower price, from a new company and will be available online in Flipkart. Basically, at that time this phone cost around Rs 14,000, and before that time you're getting a flagship experience from that phone because Xiaomi organized Mi 3's flash sale, this concept was already popular in China, Xiaomi had already made this concept popular, and here in India also they had introduced this concept.
In the first flash sale, they have kept 10,000 pieces of Mi 3, and for buying those phones India's 1 lac people came on Flipkart because they were on the hype train, and because of that much traffic, Flipkart got crashed for the first time in its lifetime. So from we can understand that this technique works in the market, as most of the people in India wants to buy phones with good specifications, all the techies present here will obviously be interested in this phones as they want to buy phones with good specification at the best possible price, thus why most of the people go for this phone. So if we see from this flash sales concept has started making it's placed, if we see many other companies adopted the concept of the flash sale, so if we talk about Motorola, they had continued this concept with many of their phones and if we talk about Realme so they keep on releasing their new phone almost every second day, and also their is Redmi, POCO and even you can see this in the Samsung phones also, so basically this concept got very much successful, the main reason behind the success of this concept is to give better specification at a best possible price and sell it in a flash sale.
Does this makes sense in 2020, No, because nowadays most of the companies say that 99% of the phones are being assembled in India, that means 99% of the phones that you're buying from the market are made in India, 1% of the is said to be imported from outside India? If companies are making 99% phones in India, there are companies, plants, etc, which they showcase is a good thing, both Realme and Xiaomi also say that 65% of the components they are using are being sourced from India itself and the rest of the components are being imported from outside the country, from which we can understand that phones are made in India and also it's being made in a large scale also if they want to stop the flash sales then they can it in one go easily as they already have enough stock, a huge lineup which they can already make available in the normal sale. In an earlier time, the number of company was small, the products were limited, they were unable to provide a large number of products so it was sold in flash sales, but 6 years is such a long time span in which if they wanted to solve this problem then they would have easily solved it, and you would have seen the products in normal sales, instead of that you can still get to see the flash sales in 2020.
There are multiple reasons behind that, first is the free marketing free hype, whenever a phone comes in flash sale, then obviously you'll get to see news headlines that on this date or this time a flash sale will be there for this or that phone, and you get excited, that this phone is better and you want to buy this phone on this day and all. The second thing is that many people come to buy the phone, so the company releases a press statement in which it is stated that they sold about 1 lac phones or 10 thousand phones or 50 thousand phones within a minute or so, so this generates curiosity in the market that so many phones are sold in such a short time so this phone might be good, all and all they get the publicity for free due to the flash sale, because of which many companies which conduct a flash sales, tries it almost with every phone for the publicity for the phone, you might have noticed that when after 1-2 month the hype of the phone starts going down, and flash sales also doesn't work for it, so after that, they just continue their phone in the normal sale, without others knowing about it. Does,t it feels weird?
Do you know that the 30% orders in a flash sale get canceled within 30 minutes, due to the customer's personal issues or problem, and the companies release their press statements just after that, they have sold 1 lac phones in 1 minute, and they don't even put the canceled orders on sale again.
Another fact is that 50% of phones from the flash sale sold to the black market, it means the phone which you're getting at around 15,000 will be available in the offline market for Rs 16,000-17,000 or at a raised price, because the phone is not available in the online market but you're getting this in the offline market, so you could pay 1000-2000 extra for the phone and can buy it from the offline market.
Basically, the companies know about black marketing and they also know that this helps in the increase of the sales of their phones so they don't do anything about it. That's why there are many black marketers groups present in the market, they used to purchase as many phones as possible from Amazon Flipkart's flash sales and later sell them in the market at higher prices. If companies take any action on this matter of black marketing then at the end of the day the sales of their products will decrease, because of which they don't take any action on it, as their company is getting success and profits.
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