Flipkart India’s largest online retailer has decided to become an app-only player in the booming Indian ecommerce industry hardly two months after fashion e-tailer Myntra switched to an app-only strategy.
Company has a logic behind app only option as it believes that India is gradually transitioning from a mobile first to a mobile only country besides exponential growth of smartphones and mobile internet in India.
At the moment Flipkart 70%-75% of total traffic is coming from their mobile app and continue to offer both desktop as well as mobile option for their customers.
Flipkart has 45 million registered users clocking over 10 million daily visits, and expects to double the gross merchandise value (GMV) of the products it sells on its platform to $8 billion this year.
The company raised $2 billion in 2014-15, and it was valued at $11 billion in its last round of funding. The app also allows personalized shopping experiences for consumers by understanding their location, preferences and purchase patterns.
Flipkart’s phasing-out its web presence based on its foresightedness may be shortsightedness in reality. Myntra, fashion e-tailer is said to have seen a 10% decline in sales in the immediate aftermath of its going app-only.
Perhaps approach of Flipkart may be better to focus fully on what they believe in and avoid wasting resources however sometimes early entry into a market when it is not even ready may kill the brand
as happened in so many cases such as Picture in Picture concept which came in India and concept was marketed with lots of TV ads in 80’s but failed as at that time there were hardly two Tv channels in India and not much demand.
Similarly even though there is big growth in the Smart phone market in India however still there is large numbers of PC’s are being used and most often people prefer to see products or clothing on the larger interface before buying especially when emotional aspect to the purchase is involved such as in the case of clothing.
Complimenting Mobile app option along with web option is judicious move however closing PC option altogether may actually results in loss of additional revenue.