Mobiles and laptops dominated Flipkart’s sales in 2014. Fashion, lifestyle, home and consumer electronics were the marketplace’s top selling categories in 2015. The ecommerce giant believes that in the next two years, large appliances category is going to fuel the company’s growth.
Flipkart had launched (or rather relaunched) large appliances category in April 2014. High shipping costs, logistics issues, high returns and piling consumer complaints had forced Flipkart to stop selling products under this category, until they re-entered the segment 2 years back.
Ever since the launch, the sales of TVs, washing machines, ovens and air conditioners skyrocketed. Last year around the Diwali peak season, the company sold 250,000 TV sets (1/4th of the total TV sales in India during that period) and nearly 500,000 units of large appliances in total.
Amit Bansal, Business Head – Flipkart revealed, “Over the next two years, (large appliances) is going to be one category that’s going to drive revenue growth for Flipkart. This category is built on customer service. The biggest lever we’re going to use is bringing down the cost of ownership, whether it’s offering high-end technology at disruptive prices or offering the kind of financial arrangements nobody has seen before.”
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For a long time, buyers refrained from buying huge home appliances like television sets and washing machines online. But last year, the sales of these products picked up. This mainly happened because etailers worked hard to eliminate the roadblocks such as late delivery, and absence of effective installation & after-sales services.
For instance, in 2014 Flipkart formed a strategic partnership with Jeeves Consumer Services that offers after-sales service for large home appliances and electronics.
Bansal explained, “The biggest piece in large appliances that defines customer experience is how well you deliver the product and how well and quickly you can install the products. With Jeeves we’re able to give a spot-on delivery time and a spot-on installation time to customers. Earlier, the installation turnaround time was 72 hours after delivery for TVs. Now, one in five TVs sold on Flipkart is installed at the same time.”
The growing popularity of online shopping also compelled established home appliances brands to enter the online space, either independently or via marketplaces.
“Diwali really shook up the market. It helped make brands realize that e-commerce is not just another channel, it could be the channel to growth. There is a shift happening in the mindset of brands. And we want to be the platinum partner of choice for global brands. Over the past few months, we’ve had discussions with a handful of global brands (that aren’t selling online) and things are moving in the right direction,” Bansal stated.
Furniture is another category that Flipkart is placing its bets on in 2016.
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