Amazon Vs Flipkart Case Study

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Flipkart vs Amazon: Future Prospects in India July 29 2014, “Flipkart”, the big daddy of Indian online commerce announced raising fresh capital of $1 billion in one of the largest funding rounds. A day after, “Amazon”, the King Kong of selling things announced investing $2 billion in India. The announcements are being seen as one of the strongest cry for battle between these two. The numbers being huge have raised noise to extraordinary levels in e-commerce industry. The big question is who is going to win this market in India – the native Flipkart or the global colossus Amazon? However the answer might be the “Indian Consumer”. The announcements have made it very prominent that the price wars are going to continue for a long time. Both companies…show more content…
Amazon being a public listed company has not shared any figures. Though they do say that India is on the track of becoming the fastest country to ever reach $1 billion dollars in gross sales. 5) Amazon Prime/Flipkart First: Flipkart had introduced a premier membership program in July 2014. Though benefits are limited to one vendor only. Amazon Prime, the paid membership program is still not present in India. It would be interesting to see when they would bring their membership model in India. 6) Key Vendor: This might become the most underrated and the most important factor. Flipkart uses the Wholesale retailer. Though they have adopted the marketplace model last year, still the bulk of sales are happening through WS retailer. Amazon depends on third party vendor in India. An unconventional deal with Catamaran Ventures, the private investment arm of Infosys co-founder N R Narayana Murthy is on cards which could pump up their sales. 7) Apparel…show more content…
Amazon too is increasing its count to ten by adding three more in Maharashtra, Haryana and Uttar Pradesh in coming months. Clearly Flipkart was preparing itself for Amazon. The day they announced their $1 billion raise, it gave a wake up call to Amazon. Flipkart strength in this fight is their experience with Indian consumers and local partners. The biggest challenge for them will be Amazon’s stamina and willingness to shed money for long periods of time (years) until they get their market share. Where does it leave other market players? Aptly put in trouble. Only some seem to survive this cash downpour (Snapdeal). The real winner seems to be Indian consumer. Experts say that consumers shall be approached like never before. Discounts will be given and more importantly services shall be provided in a way to retain them as long as possible. This won’t be a 100m dash. It’s going to be a long marathon. When companies are involved in such a race they take periodic breaks to see whether their plans are working especially when this whole sector is still unoccupied and ever

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