Business, Technology

Flipkart and its BigBillionDay!

Yesterday, Oct 6, 2014 was a huge day in Indian Ecommerce. It all started with this ad by Flipkart, and Snapdeal tried to ambush it right on TOI front page itself! (Surprise, surprise!) .

In any ways, here’s what I thought of the whole thing –

  • I thought largely the BigBillionDay was executed well
  • Of course there were aggrieved customers, and posts from an ‘esoteric’ blog about how prices went up and down, but still I thought, a lot of consumers actually did prepone their buying decisions and that was great for the ecomm players.
  • In fact, even other ecomm retailers benefited in this frenzy! Won’t be surprised if one found out that other players like Amazon, Infibeam, Snapdeal also benefited from the #bigbillionday
  • This was basically an attempt by Flipkart to emulate Alibaba’s strategy of achieving 5x sales, which Alibaba routinely executes, and with aplomb on Singles’ day – Nov 11 in China. -Check this BBG article to know more!

Alibaba Group Holding Ltd., China’s largest e-commerce company, broke its one-day sales record by more than 80 percent as it heads toward an initial public offering that may be valued higher than Facebook

Taobao and Tmall, Alibaba’s two main platforms, topped 35 billion yuan ($5.75 billion) in the 24-hour period, surpassing last year’s sales of 19.1 billion yuan, the company said on its official Twitter Inc. account. Yesterday was China’s Singles’ Day, a local twist on Valentine’s Day, and e-commerce firms marked the occasion by flooding the Internet with promotions and fueling demand on China’s biggest online shopping day

What’s more, Flipkart has got a lot of marketing eyeballs, for free as well! Flipkart, and Indian Ecommerce is slowly reaching heights that few have reached, and to me, this is just the beginning! Quite exciting times for Indian Internet space, I say!

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Entertainment, Entrepreneurship, Marketing, Web

Amazon Junglee!!

About 150 million people in India or around 75 million households are ready for ecommerce in India today. However, less than 10 million are engaged in active ecommerce today. The potential of consumer e-commerce in India by 2024-2025 is likely to touch around 594.8 million individuals or 297.4 million households. You can only guess the market size of the ecommerce industry in the coming decade!!

Amazon India has gone live with the launch of portal, Junglee.com, which Amazon acquired in early 1998 from Indian entrepreneurs Rakesh Mathur and Ashish Gupta. Junglee is an online product comparison and advertising site with several first-of-a-kind features such “real-time customer reviews” from Amazon.com, inline seller store locator for sellers in India and one-stop access to selection from Indian and international sellers. Junglee aggregates detailed product information including customer reviews, price, and shipping speed across multiple sources, including Amazon.com, so customers can research products and evaluate buying options to make an informed purchasing decision. Customers can also write their own reviews, read millions of real-time customer reviews from Amazon.com, “Like” products or sellers, and share products through Facebook, Twitter and email.

Junglee is positioned as a market place which makes buyers and sellers meet, instead of an ecommerce website. It could possibly become a means to drive people to Amazon India in future when they launch the full fledged service in India. The incentive scheme for sellers to post their products on Junglee is very interesting. They can:
1. Drive traffic to your store/website: By advertising products on Junglee.com, one can convert Junglee’s traffic into their own customers
2. List Product Ads for free: No listing fees, no cost per click or subscription fees. On the other side, Ebay.in charges sellers to post ads!
3. Reaching qualified shoppers: Junglee puts products in front of customers who have expressed intent to purchase those exact products
4. Highly targeted placements: Recommended buys when classified in categories means a highly focused sales channel for the sellers

Customers can discover over 1.2 crore products and 14,000 brands, and purchase items directly from hundreds of retailers. Customers can buy products online by following the link to the seller’s website or find a seller’s physical store if they would rather purchase the product in person or call the seller and place an order by phone.
Junglee has an ambitious vision of organizing selection and buying choices. They are relentlessly focused on adding selection and making it convenient for customers to find, discover, and shop anything using the service.

Given that Amazon is launching its ecommerce service in India soon, Flipkart and other ecommerece websites need to ramp up at the earliest and quickly build presence in Tier-II and Tier-III cities of India. Flipkart or Amazon? Do you have a brand loyalty or you will go after the one offering lowest price?

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Marketing, Strategy, Technology

Is Groupon a good idea for retailers in India

Clearly, the trending topic for the week has to be groupon and its stellar IPO in many levels. The IPO which opened at $20 saw shares rise by 35% to close at $27 on the first day of listing itself. This made a lot of people millionaires and justificably so because of their hard work.

The question that a lot of folks in India are still figuring out is whether a Group Buying site is indeed good for the retailers… To quote a retailer

As a retailer who has used Groupon — as well as traditional advertising — to build my business, I’ve come to the conclusion that there’s a lot of misinformation out there. Is Groupon the worst marketing ever? Or is it the best marketing ever? Probably both. One thing is for sure: Groupon is a beast. What else would you call something that can deliver 2,000 customers to your store? It’s a beast that can propel your business or smother it. It depends on your business. It also depends on you.

Now what will it depend on in the Indian Context –

Primarily 3 factors:

1. Nature of your business and local factors – such as sector of operation , perception on discounts etc

2. Brand sensitivity – will offering a discount dent the brand in the eyes of your regular customers? It is a judgment call. I am sure that it is a bad idea in some cases.

3. Pure economics – Is the LTV of the customer good enough ? Can your giving discount to the customer the first time around help you build lasting relations with these new folks who came by to your place?

4. Average sale amount – Is the average sale amount high enough? Does the customer also buy stuff that was not included in the deal too?

Let us know your views on this.

 

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