4 Ideas For Flipkart To Break Away From The E-Commerce Rat Race

Flipkart — the poster boy for Indian Startups and India’s largest e-commerce player reported a loss of Rs 2,306 crore in FY2015–16. It’s daily losses ran up to Rs 14 crore in order to fight competitor Amazon, which is one of world’s fastest growing marketplace for online retail. Even though Flipkart’s revenue grew by 50.3% over last year, its market share remained the same.

And most of Flipkart’s investment is consumed by:

1. High remuneration to its top employees. Read this for more information https://officechai.com/startups/flipkart-salaries/#sthash.IqnMBgsA.dpbs
2. Consumer promotions and heavy discounts to maintain its leadership position in the e-commerce space in the country.

Here is a crisp comparison of the revenues, expenses and losses of Flipkart and Amazon

Source: Economic Times

So while Amazon being an MNC can readily pump in cash in India, for Flipkart its not even an option. Moreover, Amazon has already committed $5 billion for the Indian market. What looks like, it’s going to be a real tough battle for Flipkart to maintain its leadership position while staving off heavy discounts and consumer promotions from its rivals.

So how does Flipkart break the chain? How can it free itself from the rat race of never ceasing discounts, which is the ruling criteria for e-commerce sales? How does it become a brand, to which Indians can connect to and feel proud to be a stakeholder. Here I put forward some of my ideas which are groundbreaking and never tried before in this industry.

Make Shopping Real

Flipkart’s major business is fashion e-tailing. Together Flipkart Fashion, Jabong, Myntra owns 75% of the fashion e-tailing market in India. But see from the consumer’s angle and you will discover that its still very uneasy to shop fashion goods online — especially garments and shoes. Because these products are size specific and it’s hard to imagine yourself instead of the showcased model. It’s suitability will depend on your body type, complexion, attitude and other factors personal to yourself. Even though the size zero model might look fab in that dress, you can’t think more if it will make you look equally great.

It’s here where Flipkart can make a big change and alter the way consumers shop online. High investment in technology to provide a completely different user experience, where shoppers can create their similar Avatar on Flipkart.

1. Variables can be as specific and broad as eye colour, hair colour, measurements, body type, face type, hair cut, complexion, foot size, foot design etc.
2. The Avatar should be able to wear the garments, shoes or accessories on the website.
3. While trying the products, there should be indicators on the right size and intelligent feedback on the overall look and suitability of the product on the Avatar.
4. The look should be shareable on social media platforms to gather comments or appreciation.

Interestingly this technology is already out there — extremely popular virtual world Second Life is an example, where you can do about anything through your avatar. Moreover the avatars can be customised almost entirely, with plenty of room to create a most accurate likeness of yourself. This might sound a lot of investment for Flipkart, but if executed superbly then it will be extremely hard for its rivals to do something similar. This will cut off all competition in just one plain sweep.

This will not only make online shopping much more simple, fun and trustable. But will also reduce logistics cost for Flipkart incurred during product trials and returns. Living in the online world is something that Millenials and GenZ loves, which is the primary TG for E-commerce. And making their shopping experience close to real and hassle free through advanced technology is where Flipkart can definitely break free.

Convert Customers To Members

Flipkart or any business will definitely want to increase their repeat customers. A successful business model is defined by increasing number of repeat customers, as it’s directly proportional to the quality of the product or service offered in comparison to the competitors.

Flipkart can introduce an Esteemed Members Club, which can be joined only through invite by Flipkart. Membership can be offered on a number of criteria’s — frequency of shopping, minimum bill value per transaction, bill value till date, number of referrals scored etc.

1. The benefits of joining Flipkart’s Esteemed Members circle can be promoted, in order to increase sales or average bill value.
2. There can be hierarchy in the club as well — e.g. Golden, Platinum, Diamond — so that consumers can be further moved up the value ladder.
3. Benefits can be — special or extra discounts / online currency or cash back to be utilised while further shopping / free or discounted coupons earned through affiliate partnerships.

Consumer loyalty is toughest to achieve in the E-commerce space, and this strategy is a sure-shot way to start gaining some!

Be Indian

For now, Flipkart is just another Snapdeal, Amazon or any other new comer on board. With Cash On Delivery option by most players, its hardly any deal for consumers to try out a new e-commerce portal. Then how does Flipkart play to the Indian sentiment?

Its high time Flipkart use its strength of being one of the most successful Indian Startups. Showcasing its Indian-ness is important, and making people a part of their struggle story is equally needed. It can cooly weave stories of its struggle, journey, milestones and people behind the show including the founders.

Some unique entrepreneur stories can be pulled out as well — how every transaction on Flipkart is changing someone’s (Flipkart sellers particularly) life out there. Show the bigger picture — how Flipkart is a contributor to the India Growth Story.

Recycle — Refurbish

Fashion is all about the latest. So while Flipkart is flooding its website with the newest designs and products, the consumers should also be ready to empty the old and make space for new. So why not set up an exchange connecting customers and suppliers who are willing to recycle or refurbish old items.

1. Better margins can be negotiated with suppliers receiving used products, as it will cut down their material cost.
2. Customers can be given online currency or special discounts for further transactions on Flipkart.

This is how Flipkart can give a reason to its customers to buy frequently and always be in trend, while also ensuring that they are insulated from the guilt of wasting buys.

Other ideas on the way! Stay Tuned. Stay Creative.

Useful For