Flipkart is India’s Amazon.com. Flipkart initially worked as a bookseller but later expanded its offerings to digital music and electronics. Bootstrapped by two founders, Flipkart has raised more than $180 million funding from the VC organizations. Their market share is phenomenal where a sale occurs roughly every 20 minutes on their platform.
Let us explore some reasons that have made Flipkart widely popular and made the company work parallel with giants like Amazon:
Selection of product category
Flipkart started its business with selling books online; it’s a product category that has high profit margin with low maintenance cost and can be easily transported with no storage cost. These are non-perishable products with minimal chances of having a lesser value. In the beginning they didn’t maintain enough inventory due to fewer orders and the delivery time was also not very critical, so they easily managed the entire procedure and satisfied customers to the maximum extent. Later, the product categories to which Flipkart moved also made them enjoy same benefits.
Flipkart provided the ease of purchasing books while considering that most of the Flipkart’s customers are corporate employees who are working and living in large metropolitan areas; the convenience has made their leisure time on weekends unbound. The small town and remote area customers are offered with a Flipkart catalog which is much comprehensive than any other local store.
Supply chain productivity
The supply chain productivity of Flipkart is the major contributor towards their success; it proved to be a game changer. Although it’s not the first e-commerce player in the country but Flipkart managed to resolve a major issue that people making online purchase in India were facing.
They ensured the first stage of marketing with word-of-mouth where customers communicated to their friends and family how quickly their orders are delivered. Now this craze has spread far and wide.
Free shipping and discounts
In the initial days, customers were offered with high discount margins whereas books are a high profit margin product category which the neighborhood sellers could also manage to give. Flipkart even offered the same discount packages to every customer no matter where the customer is located, and they can also do it because of the high accumulated sales volume across the country.
Free shipping was an added advantage for the customers, unless they need books immediately Flipkart is the best choice. Now shipping is not free under a certain amount of bill. Whereas in the beginning, it was no doubt an excellent customer acquisition strategy which let them become a big brand.
India is a growing economy which is rapidly advancing in multiple facets. E-commerce is one such area where India is progressively making positive strides. With increase in e-commerce, trend of online shopping is also becoming popular among masses.
Today, people in India are comfortable in purchasing anything from their smart devices. Not only online shopping website but also purchases from apps are becoming increasingly widespread. Word-of-mouth is also playing a major role and e-commerce is becoming common for the younger generation mostly.
Recognition of a market
Flipkart took an initiative that no other e-commerce player of India had tried before; they established their own delivery service. It came out to be so successful that now it’s being considered a separate organization. Flipkart recognized its customers’ need and managed to address it effectively and made it a separate unit. It brought another opportunity for Flipkart without any surprise that other online sellers get their services for reliable delivery of goods.
Online shopping is addictive
Online shopping is super-easy because think of anything in the world, you can compare prices and order something within a matter of minutes. No need to wander through various brands or find a parking space, everything can be done on the fingertips. When someone has a positive experience once, they are more inclined to order and purchase again. Flipkart has truly understood this mentality and strived to get recurrent business from repeated clients.
It took some years, but Flipkart has totally penetrated in Indian market and it is only bound to grow further. Other competitors come and go, but Flipkart is definitely here to stay!