Etailers are often haunted by one question – What’s next? In such a competitive environment, ecommerce companies have to constantly work towards strengthening their existing strategies/channels and introducing new strategies in order to expand their businesses.
Here are online marketplace Flipkart and prominent jewellery brand Tanishq’s latest expansion strategies.
Flipkart to experiment with a discount pricing model – one-box delivery
‘Stop us from doing one thing and we’ll find a new way to do the same’ seems to be the motto of Indian etailers. The new FDI ecommerce rules put a discount limitation, which affected the online sales of online marketplaces. But etailers found loopholes to continue giving discounts.
After giving discounts with the help of sellers, Flipkart is looking to introduce a new discount pricing model. Taking a leaf out of American e-commerce company Jet.com’s book, the Indian ecommerce leader will soon roll out a service that will persuade buyers to pick multiple products which can be shipped in a single box.
“Courier price slab changes with every 500 g. For example, a pair of shoes typically comes in a 1.5 kg box volumetrically but the box is partially empty as it only occupies 1kilogram and one hundred grams volumetric so you still end up paying cost of the 400 grams. So Flipkart will suggest consumers, say a T-shirt or toiletries that can be included to complete the 1.5 kg,” revealed a source close to the development.
Once this strategy is implemented, customers would get the benefit of discounts and Flipkart would effectively reduce its shipping costs. The etailer plans to introduce this service by the end of December.
Tanishq wants to leverage online jewellery store Caratlane’s digital presence
Titan Company’s Tanishq jewellery brand wants to ride on etailer Caratlane’s online success as part of their expansion strategy.
The gap between offline and online retail has gradually reduced, thanks to omni-channel strategies of digital and traditional retail brands. Tanishq’s parent company Titan had bought a majority stake (62% apprx. for Rs 357 crore) in Caratlane back in May. This strategic investment was made for long-term stability, to reach out to more customers, and leverage each other’s strengths.
Up until now, Caratlane used this partnership to scale faster and benefit from Tanishq’s back-end support. Now the jewellery brand will use the online retailer’s digital presence to increase its online business.
“The assimilation (between the two firms) is happening. We bought it because we believed the exclusive potential in the online jewellery space,” said C K Venkatraman, CEO of Tanishq.
In May 2016, Tanishq had also partnered with fashion etailer Myntra to sell jewellery online.