“It came to me as a Christmas gift from my Secret Santa, and it was all about choice, convenience and a new relationship,” is how Naveed Ansari, a 26-year-old Project Executive from Mumbai, recounts his first experience with Flipkart. A typical professional from a metro, he's short on time, and he's invariably seeking convenience. So, an e-voucher from Flipkart seemed an ideal fit. This gift marked his initiation into the sphere of e-commerce, and the journey for him has “just begun”.
Many Indians today are embracing e-retailing with enthusiasm. Popular portals such as Flipkart are spearheading the conversion of offline shoppers into online bargain hunters. Adds Naveed, as an afterthought, “I felt Flipkart was the best option as the transaction was easy, and the variety of products was a bonus.” For Flipkart, this means the unlocking of a vast audience waiting to experience the joys and comfort of shopping online. Sachin Bansal, CEO and one of the co-founders of Flipkart (the other being Binny Bansal), is an ardent believer in the merits of customer service. “A simple desire to create a tailor-made product for the Indian consumer has grown into something beyond what we imagined,” Sachin muses. A quick glance at Flipkart's timeline shows it was to start as a price comparison platform, but there weren't enough e-commerce sites to compare. So, both the Bansals, who were colleagues at IIT-Delhi, and then at Amazon.com, thought, “why not start an e-commerce site?” That was the genesis of Flipkart. From an initial investment of $8,000, this humble seed of desire has germinated into a $100 million e-retailing favourite. The founders' passion for the consumer Internet space manifests itself in the brand, which is synonymous with customer service and satisfaction. ‘Don't count your customers before they smile' is the company's operating mantra, and it's a mantra they're applying successfully alright!
E-commerce: Good to go?
The concept of e-commerce is downloading at a fairly rapid pace in the psyche of the Indian consumer. In the metros, shortage of time is a big driver for online shopping. On the other hand, accessibility to a variety of products makes audiences from smaller towns and cities opt for the online route. Major retailers face challenges in stocking their stores adequately. Often, customers are unable to purchase items of their choice, thus prompting them to resort to e-retailers. “For books, I usually prefer shopping from physical stores, but so far, only Flipkart has managed to supply me with Manga, Japanese literature, that's otherwise difficult to find. Plus, it's often cheaper to buy online. I'm definitely going to be a regular on their site,” enthuses Riddhima Toshniwal, a content writer from Raipur.
Such experiences explain the growing popularity of Flipkart in the non-metro regions as well. “We will close 2011-2012 with over $100 million in revenue. By 2015, we want to clock in $1billion, but looking at present trends, we may be able to do it sooner,” states Binny, Flipkart's COO. This statement doesn't seem far-fetched; a quick overview of India's Internet penetration shows a user base of approximately 100 million. The Government's National Broadband Plan, pegged at $4.5 billion, proposes to connect nearly 160 million additional Internet users by 2014. The spread, and subsequent adoption of e-commerce, thus, only seems logical. With several reputed brick-and-mortar retailers also offering online services, it seems natural the trend of shopping remotely will scale up substantially. “The value proposition in either formats of retailing, physical and online, is different. It's the experience of touch-and-feel that makes physical shopping exciting. In the online context, convenience and comfort takes over. There's ample scope for both to grow,” Sachin avers.
The Devil lies in the detail
A robust back-end is a vital pre-requisite for an online business to survive, since once the customer completes her transaction, it's this back-end that connects the dots.
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