I.
Flipkart is losing money definitely. But so is Amazon which has not reported a profit before last year. However Flipkart's losses are not for the same reasons as Amazon but it should not be forgotten that FK is never afraid to try out models and kill them if they fail. FK is following a lot of Amazon's footsteps but it is coming into its own quite a bit and given FK does not have to do the same mistakes that Amazon had to do for more than a decade, FK has a good second mover advantage.
II.
Flipkart has been a trailblazer in the Indian e-commerce space by forcing the users to internalize new habits. Getting them to trust the online e-commerce stores with their money and buying products online without a rethink, Cash on delivery and now 'online only sales'.
Amazon.in is also being forced to innovate at its own pace in India changing its last mile delivery models (IBP stores).
So right now this is anyone's game.
III.
Flipkart is simply bulking up its warchest on the impending war with Amazon. Neither of them are going to let go of the massive opportunity that they do not have any more in China. If Alibaba could do a single day $5.7 Bn sales on Nov 11, there is no reason to think why we might not be looking at a similar opportunity just as big in India where the human consumption potential is just as big!
However, the more it looks like India will not be a winner takes all market. Amazon, Snapdeal and Flipkart will have to contend with being 3 players in a huge ecommerce market in India unlike China or US... the rules are just hatke in India :) Of course there are still the pristine south east Asian markets for everybody's taking!
I. Flipkart is losing money definitely. But so is Amazon which has not reported a profit before last year. However Flipkart's losses are not for the same reasons as Amazon but it should not be forgotten that FK is never afraid to try out models and kill them if they fail. FK is following a lot of Amazon's footsteps but it is coming into its own quite a bit and given FK does not have to do the same mistakes that Amazon had to do for more than a decade, FK has a good second mover advantage.
II. Flipkart has been a trailblazer in the Indian e-commerce space by forcing the users to internalize new habits. Getting them to trust the online e-commerce stores with their money and buying products online without a rethink, Cash on delivery and now 'online only sales'.
Amazon.in is also being forced to innovate at its own pace in India changing its last mile delivery models (IBP stores).
So right now this is anyone's game.
III. Flipkart is simply bulking up its warchest on the impending war with Amazon. Neither of them are going to let go of the massive opportunity that they do not have any more in China. If Alibaba could do a single day $5.7 Bn sales on Nov 11, there is no reason to think why we might not be looking at a similar opportunity just as big in India where the human consumption potential is just as big!
However, the more it looks like India will not be a winner takes all market. Amazon, Snapdeal and Flipkart will have to contend with being 3 players in a huge ecommerce market in India unlike China or US... the rules are just hatke in India :) Of course there are still the pristine south east Asian markets for everybody's taking!