Payment solutions provider PayU and ICICI bank have together taken a plunge into the online discounting program. They have launched a 15 days long campaign ‘Fantastic15‘ for Indian shoppers with 35 online brands, where shoppers get up to 40% off on shopping with ICICI Bank Credit and Debit Cards. Further, every consumer will get an assured discount of upto 15% on every transaction done through PayUMoney.
Ending on 9th September, the campaign is further trying to entice the users by giving out gift vouchers as well. Some of the partnering brands include Jabong, Dominos, Adidas, Shopclues, BookMyShow, Goibibo, Red Bus, Zovi, Fabfurnish among others.
On one hand the e-commerce players still continue to offer discounts and coupons to attract more customers, and now even the companies powering online payments have joined the game. Although the consumer is clearly the winner in this discount-play, one has to wonder where is this all money coming from. Are the marketing budgets of these companies so high that they are selling products at high loss values?
For instance, if a INR 1000 product is available at INR 700 after a 30% discount given by the retailer. Then ICICI offers a 40% further discount, bringing down the marked price to 420 and with PayU’s 15%, the customer buys it at INR 357, that is a total discount of INR 643! Where is all the money going?