Amazon Prime Day kicks off the war with e-commerce deals with up to 70% off
On the mat he opened prime daycampaign in which Amazon is offering discounts for subscribers to its benefits package, anyone browsing the internet this week will find promotions everywhere.
In the time of skinny cows, to meet the American giant, Casas Bahia, Mercado Livre and Magazine Luiza are some of the sites that offer up to 70% discount on their products.
According to Ibmec Finance Professor Harold Monteiro, the order moving online retail cannot be left behind. Even more when it comes to trying to compete with Amazon, which is a well-known brand that is expanding in Brazil and has already consolidated the promotion in the consumer’s calendar.
In two years, Amazon has opened 16 facilities, including distribution centers and delivery stations in the country. According to the company, investments in the country are aimed at the long term.
“Because Amazon created the campaign, other companies generally benefit from this day if they also practice lower prices on some of their products,” notes Monteiro, whose competitors can benefit from the spending intent of those who don’t. on sale on Amazon. “And if brands don’t take advantage of this day, they are left behind”.
The month of July, according to the coordinator of the Marketing course at FGV, Fernando Marchesini, was always full of promotions. Due to the school holidays, the flow of people on the streets prompted brick-and-mortar stores to cut prices in an attempt to attract impulse spending.
This format is being brought to the Internet at a time when consumers are also more exposed to online advertising, consuming more entertainment online.
Amazon, on July 12 and 13, offers discounts of up to 50%, with free shipping with no minimum order value throughout Brazil on products sent by the company, for subscribers of its Prime streaming package (subscription costs R 14.90 USD per month or R$ 119 per year, which corresponds to R$ 9.91 per month).
From the 8th to the 12th, Casas Bahia promoted the fourth edition of Vip day, its free loyalty program, with up to 50% discount for registered users. In addition, the retailer offers free shipping to the South and Southeast regions and 48-hour delivery, premium cloud storage service for three months and other benefits.
Mercado Livre offers coupons up to 70% off products in different categories, with coupons for those who buy above certain values, and fast and free shipping for purchases of R$ 79.
“The company’s interest is to use loyalty as a product sales process. Today, it is very difficult to retain any consumer who has a range of offers available. No one buys at first sight anymore. With one click, anyone can shop the prices and benefits on every site,” says Marchesini.
He continues: “So if one store has a TV for 2,900 BRL and another for 2,850 BRL, but they deliver it for free or give you a voucher that you can use to buy another product, the advantage makes more difference than the price. . And the store tries to get the person to buy another product. These promotions are increasingly aggressive in more interesting periods”.
Casas Bahia has been holding monthly VIP days since April, but the dates vary each month. In July, the network anticipated and coincided with the first day of Amazon’s campaign. And the results of the loyalty program are in line with the strategy, says Guilherme Perez Simões, CEO of CRM and Fidelidade at Via, owner of the Casas Bahia and Pontofrio brands:
“The results were promising. With Vip Casas Bahia, our loyalty program, the network has seen higher repeat customers and double the conversion rate compared to those who are not part of the program”.
Despite practicing up to 70% discount on items on its website on the 12th, with 10% for cash payment, Magazin Luiza reported that the campaign is not special, but an edition of a series of promotions that take place almost daily.
Also read: Amazon says it had the biggest Prime Day in its history
Far from Black Friday
For FGV professor Fernando Marchesini, the more companies that connect with Prime Day, the greater the importance of this week of July in the Brazilian consumer calendar. But since Prime Day isn’t an open-to-everyone event, but reserved for subscribers, it’s unlikely to reach Black Friday in popularity.
In Amazon, however, they estimate that this is already a reality, noting that their website already sells more during its own campaign than during participation in the global action in November. According to the company, Prime Day 2021 in Brazil saw an increase of more than 120% in the number of items purchased by Prime members compared to 2020, when the first edition of the event took place.
In addition, in the first 24 hours of the 2021 edition, the amount of products purchased on Amazon.com.br was greater than that of Black Friday 2020, which would be proof for the company that the retailer’s date is already part of the Brazilian’s calendar.
Amazon reported that it increased its workforce by 17 points in Brazil for Prime Day with 6,000 temporary employees in the country. In Rio de Janeiro alone, 730 temporary workers were sent to the distribution center in São João de Merita, in Baixada Fluminense, and to the delivery station in Jacarepaguá, in the western zone of Rio. Contracts are for one month.
“Events like Prime Day show our commitment to the development of e-commerce in Brazil. In addition to professional development, those who have an interest and excellent results can join the permanent staff, as happened at our last events,” said Thomas Kampel, head of public relations for Amazon’s Brazil operation.
Also read: Prime Day: Amazon records record first-day online sales
Source: Agência O Globo, via Exame