Indian ecommerce leader Flipkart is under pressure to get back into shape before the Big Billion sale event in October. Investors along with the CEO are keeping a close watch on the online marketplace and have set September as the deadline to meet targets.
Things on Flipkart’s to-do list
Co-founder & CEO Binny Bansal along with Business Head Kalyan Krishnamurthy have charted out big growth plans for Flipkart. In order to reach the main goal, i.e. monthly sales of Rs 6000 crore by March 2017, the head-honchos have set three sub-goals to be achieved by September. They are:
- Generate gross monthly revenue of Rs. 3,700-3,800 crore
- Earn Net Promoter Score (NPS) of 55
- Break even at the gross profit level
Flipkart’s management team have been asked to achieve the sub-goals by expanding sales of smartphones, large appliances & fashion, improving product deliveries & returns, and cutting down unproductive, unnecessary and avoidable expenses.
Krishnamurthy was rehired in June to revive Flipkart’s dwindling sales. And looks like he knows how to get things done as we can already see the changes.
Following Krishnamurthy’s appointment, Flipkart formed 4 seller units to increase sales, slashed ad spends, fired 700 employees, delisted sellers, acquired fashion etailer Jabong, and launched premium delivery service F-Assured.
An insider revealed,
“Kalyan has been ruthless since returning. He’s moved people out of the business side whom he thought were underperforming. There’s tremendous pressure now. He’s made it clear that if you don’t perform you’ll be out. But the targets are nearly impossible. Growth hasn’t come for a while so how are you supposed to grow double but cut costs at the same time?”
Flipkart introduces Content-2-Commerce to compete with Amazon Prime
In yet another bid to outrace Amazon, the Bansals-led firm has collaborated with several online content creators such as The Viral Fever (TVF), Scoop Whoop, FilmFare for its project – Content-2-Commerce. The etailer’s aim is to enhance customers’ shopping experience through this program.
“Our new content initiative aims at helping e-commerce shoppers in understanding and buying products that they desire and in recommending products that fulfill their interests,” said Flipkart’s CMO, Samardeep Subandh.
Flipkart is toiling hard to meet the pre-decided targets by cutting down costs and introducing innovative initiatives. But as of the now, the etailer has a long way to go. Will it be able to touch monthly sales of Rs 6000 crore from current Rs. 2000 crore? Will it be possible to cut discounts and increase sales simultaneously?