Flipkart began as a start-up with a venture of only four lakh rupees. Today it is a name that is known across the length and breadth of the country. It has grown into a $ 2 billion income online retail monster in only five years.
The Indian startup started offering books in the first place and soon started offering a wide assortment of merchandise. An amazing idea, it epitomizes some of the most striking components of Indian ecommerce companies.
It was all about taking a risky move, in a country where individuals have different tastes and inclinations. In a country that is as diverse as India, an online business start-up was bound to have numerous challenges. In India, individuals like to shop in person and purchase merchandise they see and like. The consumer behavior and mindset is heavily oriented towards the traditional way of buying. But Flipkart managed to bring about a change and today internet business has turned out to be one of the quickest developing sectors in India.
The two major challenges that web based businesses faced when Flipkart was established were primarily the issue of online installment portals with few individuals favouring the online installment and the gateways were difficult to set up. Customers didn’t trust companies from an industry completely new for them. Flipkart handled this issue by offering cash on delivery and payment via card on delivery, a simple adjustment that became an innovation and which each web based shopping site in India offers as an alternative today.
The second issue was the whole store network framework; delivering merchandise on time is the most essential element that decides the sucess of an ecommerce company. Flipkart handled this issue by launching their own supply chain management system to deliver orders in a timely fashion.
Currently with massive increase in Flipkart’s user base, maintaining a decent client experience is the main challenge the company can face. Flipkart has adopted a strategy to invest a significant portion of its raised fund into supply chain efficiency, building a better talent pool and technology innovation. Their current major challenges are taking logistics to all landscapes within the country including cities and villages, making payment gateway alternatives secure and simple for the customers.
The idea of Flipkart was new in India but not in the global network and what made Flipkart overachieve its goals are the way in which it handled the challenges, and developed it’s understanding of the Indian geography and the mindset of the Indian consumer. Innovation and adjustment are the key drivers for the success of Flipkart.
As they move into the future Flipkart will definitely evolve. They will reorient themselves to becoming more productive and profitable especially in financial aspects keeping in mind the challenges in raising capital. Also we might see the different schemes of discounts, rebates and freebies fading away.