7 reasons why flipkart is a big success in India - FaqLabs

Tuesday, 19 December 2017

7 reasons why flipkart is a big success in India

7 reasons why flipkart is a big success in India

Flipkart the online shopping store in India was launched by 2 ex amazon employees who returned to india after quitting it. Sachin Bansal and Binny bansal had passed out from Indian Institute of technology from Delhi before joining Amazon. 

They founded Flipkart in the year 2007 which started selling primarily books. Flipkart today is a huge success and has become an example of how a startup should be. 

It has developed a huge satisfied customer base and thus has been climbing ladder of success and growth. Its valuation has been hitting new heights and investors have been pouring in huge money. Here are 7 reason why flipkart became so successful,

1. Excellent Customer Service

One of the top reasons why flipkart is so successful is because of the customer service it has provided to its customer. In online shopping customer trust is the biggest factor without which retaining new customer is a mountainous task. Considering this, flipkart has done a great job by providing excellent customer service strategy. 

Flipkart seem to have put a lot of money in getting the customer service right while the other online players were spending heavily on marketing. It has been striding towards achieving new goals of better customer service and that seems to have worked for them. 

"A happy retained customer is much better than acquiring an unsatisfied new customer" a business strategy that flipkart may have understood well. This also seems to be their prime reason behind sustained growth and new highs. 

Flipkart has been keeping that birds eye on customers ever evolving needs. Flipkart customer service department's excellent way of resolving customer issue with better coordination has stood out and thus gained customer trust in big way. Quick resolution to the issue, is all what customers needs and flipkart has been delivering very nicely on that front.

2. Exceptional Supply chain

One of the biggest differentiating factor between flipkart and other eCommerce stores in India is the supply chain management. 

They have their own logistics branch "Ekart" which operates as a different entity itself. In the earlier days however they had tied up with other delivery companies and were able to get the deliveries done with high efficiency. 

Before flipkart came into existence people had to wait for days to get their delivery but flipkart completely changed the delivery services in India. With their own separate delivery service entity they have high command over delivery and thus they are able to make sure they stay ahead of their competitors. 

Flipkart seem to have understood the high importance of speedy delivery very early in their beginning period and hence floated their own independent branch of delivery.

3. Has been offering heavy Discounts time and again

Initially when the flipkart was started it worked as an online book store that gave huge discounts and thus managed to get attention from the customers. Books are generally a high margin products and thus they managed to give those discounts. This was their early customer acquisition strategy. Since then flipkart offered products across many more genres.

 One of the prime reasons why customers go online is because they get discounts. flipkart has been giving discounts on many products and thus has managed to get more customers year after year. It has been organising those big days where you get everything with heavy discounts. 

"Big Billion day" for example is a great deal day that they started, other's too started their own but flipkart was able to make more out of it then any other eCommerce store.

4. Smart marketing Strategy

Flipkart has ran a successful brand campaign and hence its brand value has increased manifolds. Their television advertising strategy has been great and has given them more popularity. 

They have also been targeting the online audience through YouTube and other channels. They have nicely managed to target the Indian youth and thus managed to get more customers.

 They have also been tying up with bigger events happening in country and this has been benefiting them much. One if their very interesting featured ad has kids portraying as adults which has been a hit and has caught attention of many. Such marketing tactics have benefited them unlike other online eCommerce players.

5. Managed huge Investments

Ever since flipkart came into existence it was able to get the attention from from investors. Flipkart has manged to get in lot of money via investors time and again. eCommerce industry needs lots of money to be poured in if it has to become successful. Flipkart was able to get the trust of such investors. 

2014 was a big year for flipkart when manged to get whooping $1.9 billion from investors. This was a huge sum and could definitely put silicon valley startups to shame. Flipkart apart from expanding its product listing has also aqcruired quite a lot of companies. 

It was able to submerge and acquire myntra its own rival and alter also got jabong under its banner. It spent almost $300 million on myntra. Apart from this it also acquired Mime360, PhonePe and few others. It has also been trying to get snapdeal under its belt.

6. Product Diversification and expansion

Starting as on Online Bookstore that gave good discounts, flipkart managed to diversify itself into almost everything. Right from electronics to fashion it has almost everything that you could buy.

 In the initial days it managed to get those customers through discounts and rapidly expanded and listed products across many genres. Having such diverse products also helped it retaining customers as they could buy all things from their trusted online store and that too with discounts. 

Flipkart has every kind of product on it but is mostly shopped by electronics good buyers like mobile phones, laptops and other electronic items.

7. Good return policy

One of the issue's that online customers has to face is returning the bought products if found not suitable. Flipkarts straightforward return and exchange policy has also been one of the major factors for its success. 

Flipkart has a very good return policy that allows users to return products in a 30 days time and full refund or exchange in some products. The return procedure is simple and returned products are taken back by flipkart delivery boys in the similar manner they are delivered. 

Implementing such a policy was essential in the beginning so as to gain the customer trust and flipkart was successful in doing that.

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