Posted in Marketing & Strategy Articles, Total Reads: 1301
, Published on 31 January 2015
Shopping is something which I like to do every day and it has been very easy with online shopping sites. The first thing that awe’s me is delighting with best customer service. Flipkart has never failed to deliver its constant customer support over the small period of 6 years.
To make the shopping easier, Two IIT Delhi alumni Sachin Bansal and Binni Bansal had an idea to start Flipkart. Before venturing Flipkart, they worked in Amazon.com. After quitting their job, they decided to enter into the emerging opportunity of e-commerce in India. They made a start with initial capital of Rs.4 lakh and began Flipkart’s journey in 2007 when e-commerce was unheard of. They started their business by selling books online. They are ardent believer in the merits of customer service and satisfaction. Their Mantra is “Don’t count your customer before they smile” and they are applying it successfully.
Flipkat’s website has become one the 10th most searching websites in India. Firstly it started its business with online and offilne bookstore because books are easy to procure, large target market from children to grown up people, easy in packing and delivering, no fear of damaging and books are not so much of high cost. For two years Flipkart maintained its books’ business. First book sold at flipkart.com was John woods’ Leaving Microsoft to Change the World Tody. In starting Flipkart began operation on consignment model (procurement on the basis of demand). Whenever customer placed the order, they procured the book personally from dealer and delivered it after packing. Soon it started to gain believe of customers and captured the market position in the industry.
Looking at India’s internet penetration rate, Flipkart started to add new categories in its business like Media, Mobile Phones and accessories in 2010 and In 2011, it expanded into camera, personal care, health care, television, home and kitchen appliances etc.
Firstly Flipkart’s founders understand the problematic areas such as fear of wrong product delivered, missing of touch and feel experience, fear of satisfaction and un-returned, gap in delivery process, delivery issue in small towns, less trust in online shopping sites, fear of cash back etc. To increase its customers base and gain their satisfaction, Flipkart started to advertise intelligently, These adevertisement were not only funny but also effectively promoted customer services. Through advertisement Flipkart gave satisfaction to its customers by saying that it will deliver what it promise to. Advertisement “No Kidding No worries” gave the message “if a kid can do it, you can also do it”.
Awareness through the advertisement
- No fear of getting wrong product- 30 days guarantee
- No fear of giving credit card details- cash on delivery feature
- No fear of getting dublicate product- original product with original guarantee
In 2012 Flipkart launched of its in-house brand Digflip. Digflip is a brand of digital accessories with lpatop bags, laptop sleeves and camera bags. Later it expanded into apparel, footwear, electronics, moble phones, personal care & homecare etc. E-coomerce industry is driving a fast growth in the psyche of Indian consumer. Time shortage, accessiblity of various products at a one platform in one time, online delivery at customer’s doorstep, availability of quality material with fast customer service etc. are the key drivers of e-commerce industry growth.
With the online shopping, consumer internet valuation also getting amazing valuations like facebook’s Mark Zuckerberg has net worth of $33 billion. Entry of Amazon.com in 2012 in the Indian market is a big challeneg for Flipkart. But its long term and innovative startegies will keep it ahead than other competitors.
Flipkart works on a strategy of giving consistent customer service and that is the hallmark of Flipkart and discount can not replace customers’satisfaction of being serviced efficiently. Their aim is to provide best service at best price and act upon the customer’s feedback without dodging responsibilities. Flipkart’s fast delivering services attracted the customers and have made impression on customer’s mind. Through continuous feedback from customer, Flipkart try to maintain relationship with customers and reduce the error in delivering process if occurred.
Flipkart’s main motive is to generate a great customer relationship and loyalty by offering the great product prices and customer service. Flipkart is continuosly building amazing experiences for customers by giving innoavtive products continously.
- In 2011, Flipkart acquired the rights of Chakpak.com a bollywood news site.
- In 2012 Flipkart bought the India’s largest e-retailer in electronics in $25 million.
- In 2014, Flipkart did 100% acquisition of Myntra and Myntra will continue operating as independent body. "The Flipkart and Myntra merger created the first Indian e-tailing powerhouse, and will provide a big fillip to India's still nascent but very promising e-commerce industry.
Moto-G and Moto-E smartphone of Motorola company firstly launched through Flipkart. Enthused by overwhelming response from shoppers of Moto-G and Moto-E, Flipkart is looking at long term relationship with Mptorola Mobility. After the Motorola handset, Chinese handset Xiaomi is also launched through Flipkart and it is exclusively available on Flipkart. With in short span of time Flipkart is valed at Rs.2000 crore and announced that they would reach the $1-billion (Rs.6100 crore) by 2015.
Online shopping is customer E-commerce has revolutionized the business world and has become one of the best innovative technologies in the 21st century. Traditional method of shopping is becoming obsolete because of inconvenience and time shortage. In the coming time this industry will capture the highest market share. Through its innovative strategies, Flipkart has become the leader in the competitive e-commerce industry.
This article has been authored by Priya Chauhan from MANAGE
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