Flipkart to offer faster deliveries in an attempt to get ahead of Amazon

Focussing on the top-spending Indian metros, the company will be offering a larger selection of branded goods as well as faster deliveries

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In a set out to win back customers, Flipkart is now coming up with an initiative aimed at drawing high-spending Indian metro shoppers, who had recently drifted to business rival Amazon, towards sales. 

The largest online retail market will be offering a larger selection of branded goods as well as faster deliveries. These promotion innovations have already opened doors for a good $4 billion by investors such as Japan’s SoftBank and China’s Tencent last year. Even as Flipkart originally has eyes for small-town India, the aim this time is to focus on wooing back top-tier spenders.

By means of its flagship festive sales events, Flipkart claims to have grown 85 per cent year-on-year in its e-commerce business in terms of gross merchandise volume (GMV) between April-September 2017. Whereas Amazon accounted for a figure of 72 per cent for the September 2017 quarter.

Flipkart, as it has the advantage of being the local player, stands a strong chance into tier-2 markets. Besides, it is on edge as it only operates in India.

What is the cause of Flipkart’s downside?

Until 2015, Flipkart had enjoyed a large market lead over Amazon India, after which it withered from a retailed model into an online marketplace. As a result, the customer service, quality of the products and the time taken to deliver the products, everything suffered heavily.

How did Amazon India get an upper hand?

The main rival to Flipkart — Amazon India — worked on doubling down investments in logistics. Over time, it also introduced high-end services like Amazon Prime,  which includes quick delivery and video streaming. These moves helped Amazon to capture a large share of the creamy layer of customers who have now become the most frequent buyers too.

An omnichannel push for Flipkart is on the cards

The company will explore an omnichannel foray-selling both online and offline- for the grocery category.  If US retail giant Walmart’s investment in Flipkart becomes something, it could possibly result in a chain of retail stores in India. Flipkart has also been competing to buy retail chain Vishal Mega Mart from TPG and Shriram Group it has enough fundings. Now, it’s only a question of execution and using technology so as to ensure the best interests of the customers.

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