Flipkart Will Be A M-Commerce Company In Next 2-3 Years: Sachin Bansal

Flipkart is currently busy getting an edge over the only competitor that has the resources and knowledge to put a dent in their growth – Amazon India. Even though Flipkart is one of the largest eCommerce companies in the country, there are significant threats to its growth over the next few years. However, this does not mean that the future is bleak. In fact, Flipkart may have some very good tricks up its sleeve when it comes to innovating for the future.

Firstly, the company is very well capitalized. It has raised a total of $560 million since its inception. This shows that its investors really believe in the vision of Flipkart and its capability. Over last year, the company has successfully transitioned from a inventory based model to a marketplace model. The company says that it has registered around 1000 merchants on its marketplace platform so far but wants to have lakhs of them in the future. Online sellers are thus a crucial part of its growth strategy. While 1000 merchants may not be much, Flipkart’s relentless commitment to technology and customer satisfaction may result in many new features which may compel more merchants to join. Flipkart has also launched Payzippy, its own payment gateway which doubles up as a online wallet for customers. Finally, they have also started their premium delivery service which costs Rs.90 per item.

Recently in an interview at UnPluggd, Sachin Bansal said that Flipkart will become an m-commerce company in the next 2-3 years. He says that there is compelling evidence that most Indians will use their phones to shop for products very soon. It is already happening and not many companies are paying attention to this trend, even though data has shown that this might happen. Flipkart has been paying attention to this. Recently, they launched their native apps for iOS and Android. These apps make it extremely easy to find and compare products in addition to a smooth shopping and transaction experience.

In a previous article, we had highlighted how m-commerce will be an important factor for companies. We had gone through data from eBay India and realized that their numbers support the rise of m-commerce in India.

1. 59% of mobile shoppers would prefer to buy their products using their mobile rather than shopping in crowded locations.

2. Price comparison is an important activity that 68% of mobile shoppers engage in.

3. Mobile shoppers are comfortable with spending Rs.3000-10000 on products.

4. Mobile phones, Home appliances and Clothes/Footwear are leading categories when it comes to mobile shoppers.

The fact that Flipkart is paying attention to this rising trend of mobile shopping may be important to its future growth. Mobile, especially smartphone usage is growing at a rapid pace in the country. We think that in the next 2-3 years every other company will have to be a m-commerce company at its core.

What are your thoughts on m-commerce? Share them with us.