Saturday, April 07, 2012

1785 : When will the kart flip ?

Now I don’t need another person telling me how great the shopping experience at flipkart is....discounts et al.

I myself shop a lot at flipkart.com and letsbuy.com, which the two Bansals just acquired.

Why? Good discounts...infact deep discounts.....

Can this last? I guess no. My view is for any person to offer a quality service deep discounting is an anti-thesis.

Pick up your fav retailer, hypercity is mine, and tell me, do they do deep discount....

Margins get thinner and thinner to a point where you eventually stop making money, and then you bleed your pocket, and then you sell off. Look at big bazaar and its financial woes...and their prices are not even close in their madness (discount) to flipkart.

Amazon.com...does not deep discount...infact in quite a few cases it's not the cheapest online retailer (check out using froogle.com)

And, unlike the US, in India, the customer is loyal to the best deal, and not the best retailer.

Ask yourself, will you shop at flipkart, if they charged you full price and only threw shipping free....

So? The point.....

Sachin and Binny will no doubt make tons of money for themselves. Will they build the next amazon. I doubt it very much.

The org is in a build to sell mode....I am really not sure how they shall last.

My advise, while the party is on, buy your stuff from them. It's good feeling to rob someone....especially when its all legal.

Btw, it's kind of hidden in the devil and his details, but flipkart has tons of accumulated losses. So has letsbuy.com, so has koovs.com and the list continues....

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