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Too much negative commentary. Flipkart also did something interesting that fueled their early growth - they offered 'Cash on Delivery' model, cause many people

by nnain 10y ago

Too much negative commentary. Flipkart also did something interesting that fueled their early growth - they offered 'Cash on Delivery' model, cause many people in India don't use Credit/Debit cards for shopping! I never had a bad buying experience with them, but then my shopping has been limited. Must say though that Amazon's recommendation engine and technical prowess in general is superior. I imagine so are Amazon's warehousing robots and logistics. Also from what I once heard, their Vendor Managers are more efficient (and aggressive) in dealing with the merchants. To me Flipkart's weakness in strategic vision started showing up in dealing with the fashion segment - I never understood such an upmarked Myntra acquisition. They already had the fashion segment on their site back then! And then they got even more heady and switched to an App-Only Shop for couple of days. Whoever, initiated and approved that move!! (Side note: Flipkart founders are ex-Amazonians.)

i2rohan 10y ago
>I never understood such an upmarked Myntra acquisition. Because it was a merger forced upon them by the common investors - Tiger & Accel.
- nnain 10y ago
  Ah ok, that makes sense. A weakness then that they had to focus on making the merger work and keeping the investors happy, when there were more important things to do.
jdkanani 10y ago
You underestimated the power of Amazon here - it's not technical prowess or recommendation engine. The war was never about technical prowess. It's Amazon's customer service which pulling Flipkart/Snapdeal down to the ground and beating them hard.
- balladeer 10y ago
  Agreed. I have been using Flipkart since they launched. Amazon customer service and shopping experience are just impeccable, esp when compared to the competition. And as for Snapdeal, it's usually something just short of a nightmare. Another aspect is user experience while using their apps and websites. Click any Flipkart link from a mobile browser or an app like Twitter, you'll reach their `Install our app` page. Nothing else. You can't do anything if you have not installed their app. While Amazon simply lets me see the product or even buy it from right there while showing install app or view in app in a corner. Whenever I see that Flipkart page asking me to install their app to see a product I feel satisfied that I don't have it installed. I just close the browser tab. I just checked and last time I bought something from Flipkart was around 2 years ago. It was the Xiaomi MI3 phone which was available only on Flipkart. Last Snapdeal purchase was some 1.5 years ago. I wish I could spread my purchases across these portals just to help avoid a monopoly kind of scenario but these options are just too bad to go with.
- preetish 10y ago
  Very true! I've practically experienced the difference.
- nnain 10y ago
  I don't underestimate Amazon at all! Gave it a lot of credit for strategy, vendor management and logistics along with the technology.
- Ankurkkhuran 10y ago
  This is the correct answer. It is not discount or catalogue that is making Flipkart bleed, it is the customer service provided by their competitior. Amazon commitment to keeping customers happy is praise worthy. Many people do not buy very costly items from flipkart (namely phones, TVs, etc) because they are not really sure whether the return policy will hold and when will they get refund where as on the other hand, faith in Amazon is unshaken and people generally prefer it's platform for buying. Less I talk about Snapdeal, better it is. Snapdeal is not going to survive this war, Flipkart might. Almost nobody I know buys from Snapdeal because of their subpar customer service, though I agree that the sample set is not very large here.
tn13 10y ago
Flipkart was not the first to introduce CoD. CoD in India is an ancient concept. Indian postal service ran a system where one could order products via mail and make the payment at the postal office. If I remember correctly it was called VPP and my grandfather had purchased things like imported Cigars and German radios using this system in 60s. Even in 90s Rediff and Indiatimes offered CoD.
- vidarh 10y ago
  CoD has been offered by almost every postal service in the world. It used to be one of the main ways of paying for goods you ordered, and remained so well into the 80's or 90's in countries where credit card penetration remained low. The main limitation in most countries have been the pickup at the post office.
  - endemic 10y ago
    I made my first CoD payment (for an Amazon order) when I lived in Japan in 2004.
    - vidarh 10y ago
      I'm not surprised. Remnants of the old postal payment methods have been persistent in many European countries too. I'm from Norway, and despite being born in '75, between CoD and post/bank giro's cheques got killed off early enough that prior to moving to the UK in 2000 I only ever have vague memories from my childhood of my parents paying with checks - it was unusual in the early 80's. In the UK I still need a check book for the occasional (now finally very rare) instance where someone insists of being paid that way (the UK in theory has a giro system; in practice it only sees use for some very limited usage areas) Because these methods were so widespread and credit card penetration was low (due to strict consumer credit laws, very, very few credit cards were available well into the 80's, and debit cards were often just ATM cards without a card number), they carried over to many online shops too.
dingo_bat 10y ago
>they offered 'Cash on Delivery' model Nothing new. Online retailers had had that option for years before flipkart arrived on the scene.
denzil_correa 10y ago
> Flipkart also did something interesting that fueled their early growth - they offered 'Cash on Delivery' model, cause many people in India don't use Credit/Debit cards for shopping! COD model was available way before Flipkart even existed. > To me Flipkart's weakness in strategic vision started showing up in dealing with the fashion segment The main weakness with Flipkart are some decisions like making Myntra app only shopping locations. They did it for a full 1 year after reverting back to website access. All this for just more customer data.
- kamaal 10y ago
  I never understood buying clothes online. Its really not the same as ordering the 1.5L Prestige pressure cooker. Most Indians need to see the clothes, and may be even try them once for the right size. I'm extremely skeptical of buying any clothes or shoes unless I see them. The only thing people really buy online are stuff they already know about(like the 1.5L Pressure cooker) or throw away stuff.
  - troygoode 10y ago
    If the clothes/shoes don't fit as expected, you just send it back...
throwaway6497 10y ago
Whoever, initiated and approved that move!!. Quick Google search showed this name - Punit Soni. Why did he leave? Fallout with the CEO and team?
- nnain 10y ago
  How does a quick google search give you the name of the responsible person! That's some insider info :)
  - throwaway6497 10y ago
    searching for "flipkart app only strategy responsible" showed this result http://www.businessinsider.com/flipkart-punil-soni-explains-why-he-quit-2016-4 http://www.businessinsider.com/flipkart-punil-soni-explains-... on the first page as the 4rth result for me.

by nnain 10y ago

i2rohan 10y ago

>I never understood such an upmarked Myntra acquisition. Because it was a merger forced upon them by the common investors - Tiger & Accel.

nnain 10y ago
Ah ok, that makes sense. A weakness then that they had to focus on making the merger work and keeping the investors happy, when there were more important things to do.

jdkanani 10y ago

You underestimated the power of Amazon here - it's not technical prowess or recommendation engine. The war was never about technical prowess. It's Amazon's customer service which pulling Flipkart/Snapdeal down to the ground and beating them hard.

balladeer 10y ago
Agreed. I have been using Flipkart since they launched. Amazon customer service and shopping experience are just impeccable, esp when compared to the competition. And as for Snapdeal, it's usually something just short of a nightmare. Another aspect is user experience while using their apps and websites. Click any Flipkart link from a mobile browser or an app like Twitter, you'll reach their `Install our app` page. Nothing else. You can't do anything if you have not installed their app. While Amazon simply lets me see the product or even buy it from right there while showing install app or view in app in a corner. Whenever I see that Flipkart page asking me to install their app to see a product I feel satisfied that I don't have it installed. I just close the browser tab. I just checked and last time I bought something from Flipkart was around 2 years ago. It was the Xiaomi MI3 phone which was available only on Flipkart. Last Snapdeal purchase was some 1.5 years ago. I wish I could spread my purchases across these portals just to help avoid a monopoly kind of scenario but these options are just too bad to go with.
preetish 10y ago
Very true! I've practically experienced the difference.
nnain 10y ago
I don't underestimate Amazon at all! Gave it a lot of credit for strategy, vendor management and logistics along with the technology.
Ankurkkhuran 10y ago
This is the correct answer. It is not discount or catalogue that is making Flipkart bleed, it is the customer service provided by their competitior. Amazon commitment to keeping customers happy is praise worthy. Many people do not buy very costly items from flipkart (namely phones, TVs, etc) because they are not really sure whether the return policy will hold and when will they get refund where as on the other hand, faith in Amazon is unshaken and people generally prefer it's platform for buying. Less I talk about Snapdeal, better it is. Snapdeal is not going to survive this war, Flipkart might. Almost nobody I know buys from Snapdeal because of their subpar customer service, though I agree that the sample set is not very large here.

tn13 10y ago

Flipkart was not the first to introduce CoD. CoD in India is an ancient concept. Indian postal service ran a system where one could order products via mail and make the payment at the postal office. If I remember correctly it was called VPP and my grandfather had purchased things like imported Cigars and German radios using this system in 60s. Even in 90s Rediff and Indiatimes offered CoD.

vidarh 10y ago
CoD has been offered by almost every postal service in the world. It used to be one of the main ways of paying for goods you ordered, and remained so well into the 80's or 90's in countries where credit card penetration remained low. The main limitation in most countries have been the pickup at the post office.
- endemic 10y ago
  I made my first CoD payment (for an Amazon order) when I lived in Japan in 2004.
  - vidarh 10y ago
    I'm not surprised. Remnants of the old postal payment methods have been persistent in many European countries too. I'm from Norway, and despite being born in '75, between CoD and post/bank giro's cheques got killed off early enough that prior to moving to the UK in 2000 I only ever have vague memories from my childhood of my parents paying with checks - it was unusual in the early 80's. In the UK I still need a check book for the occasional (now finally very rare) instance where someone insists of being paid that way (the UK in theory has a giro system; in practice it only sees use for some very limited usage areas) Because these methods were so widespread and credit card penetration was low (due to strict consumer credit laws, very, very few credit cards were available well into the 80's, and debit cards were often just ATM cards without a card number), they carried over to many online shops too.

dingo_bat 10y ago

>they offered 'Cash on Delivery' model Nothing new. Online retailers had had that option for years before flipkart arrived on the scene.

denzil_correa 10y ago

> Flipkart also did something interesting that fueled their early growth - they offered 'Cash on Delivery' model, cause many people in India don't use Credit/Debit cards for shopping! COD model was available way before Flipkart even existed. > To me Flipkart's weakness in strategic vision started showing up in dealing with the fashion segment The main weakness with Flipkart are some decisions like making Myntra app only shopping locations. They did it for a full 1 year after reverting back to website access. All this for just more customer data.

kamaal 10y ago
I never understood buying clothes online. Its really not the same as ordering the 1.5L Prestige pressure cooker. Most Indians need to see the clothes, and may be even try them once for the right size. I'm extremely skeptical of buying any clothes or shoes unless I see them. The only thing people really buy online are stuff they already know about(like the 1.5L Pressure cooker) or throw away stuff.
- troygoode 10y ago
  If the clothes/shoes don't fit as expected, you just send it back...

throwaway6497 10y ago

Whoever, initiated and approved that move!!. Quick Google search showed this name - Punit Soni. Why did he leave? Fallout with the CEO and team?

nnain 10y ago
How does a quick google search give you the name of the responsible person! That's some insider info :)
- throwaway6497 10y ago
  searching for "flipkart app only strategy responsible" showed this result http://www.businessinsider.com/flipkart-punil-soni-explains-why-he-quit-2016-4 http://www.businessinsider.com/flipkart-punil-soni-explains-... on the first page as the 4rth result for me.