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"RIP Flipkart" it isn't that simple. Flipkart is aggressive, funded (150 million $ a few days ago), has superlative customer service and (generally) satisfied
by plinkplonk 15y ago
"RIP Flipkart"
it isn't that simple. Flipkart is aggressive, funded (150 million $ a few days ago), has superlative customer service and (generally) satisfied customers. Meanwhile the law of the land does not allow 100% Foreign Direct Investment in retail, and while that will inevitably change, it will take some time, thus giving Flipkart more competition free runway.
Junglee.com is just a 'dip toe in water' move, trying various things "for free" in a new market (and hence non use of the Amazon trademark).
"Amazon launches Junglee in India" (the original Junglee.com was a comparison site) is a more accurate title than "Amazon launches as Junglee in India". The site is close to useless for anyone actually trying to shop,but it will enable debugging of parts of the logistics chain Amazon is trying to set up.
The 'real' war begins when Amazon.in launches. Junglee is just a sideshow (and everyone knows it)
Eventually,assuming they don't enter into some kind of partnership, there will be a huge fight between Flipkart and Amazon, but it is going to be long and bloody and last at least a couple of years, and will not be a quick knockout.
Amazon's advantages (when it finally starts full operations) - existing client base (I was told that Indian customers spend more on the Amazon website than Flipkart's turnover), the Kindle devices and ecosystem adapted to the local publishing landscape (this will, imo, be huge), better recommendation systems, better payment systems, efficiencies of scale, (better tie ups with foreign publishers and so) better deals for foreign books and products, way deeper pockets.
Flipkart's advantages - (relatively) nimble, speed of decision making (Amazon will likely replicate its middle management heavy organizational structure, and bureaucracy), a satisfied customer base and good will, and a time advantage in working out the kinks in logistics and delivery.
Most importantly, Flipkart is running for their life, where Amazon is running for an extra spoon of dessert. I wouldn't underestimate this factor.
So if I had to bet, I'd bet on Amazon to "win" in the long run, but I would bet only money I am prepared to lose, and it is a very long way from "RIP Flipkart"
- vidyesh 15y agoMoreover Flipkart don't have sub-sellers or retailers to sell items, whereas Amazon works on a different model altogther. And here, Junglee is just like a aggregation of all the products which are shipped to India.
- playhard 15y agoi heard this is just the beginning of things to come for Amazon India
- gnufied 15y ago"Indian customers spend more on the Amazon website than Flipkart's turnover." Got anything to support that? My experience suggests otherwise.
- plinkplonk 15y agoNo source I can point to, just something that a friend who works at Amazon told me when we discussed the coming Flipkart vs Amazon war. I don't think Amazon publishes revenue broken down by country. (and even if they do I am not aware of it - I am a hacker, not an Industry/finance analyst :p). There are some 'figures' here. http://www.quora.com/What-is-an-estimate-for-revenues-gross-or-net-and-the-number-of-transactions-per-day-on-popular-e-commerce-sites-in-India-Flipkart-Naaptol-etc http://www.quora.com/What-is-an-estimate-for-revenues-gross-... According to Mahesh Murthy Flipkart (or did, at some random point in time) Rs 55,00,000 worth of revenue (not profit) a day . That is about 100,000 US $ worth, which equates to about 36 million US $ a year Again these are all estimates, by hearsay.I don't think anyone except people working at or investing in the companies have solid information.