madbullram
Well-Known Member
Just saw that Flipkart is not selling any of the major products like televisions. Looks like they are moving away from major consumer durable. Anyone has any info?
Flipkart - Change in direction?
- Thread starter madbullram
- Start date
From reports I understood that the reason was mainly shipping costs. The logisitics arm of FLipkart is now separate and hence cross subsidies will not work. With the shipping costs being a large component of white goods like TV and refrigerators, the competitiveness is gone.
My views:
There are few things people would still like to see, touch, feel and then buy. Atleast I do.
Ex: Car, Bike, TV, Refrigerator, Washing Machine, Sofa etc. The online sales might have not viable enough for them to sell TVs and other heavy appliances, more so when shipping charges are comparatively higher (local store normally have to carry the item for about 1 to 15 km for delivery). Moreover insurance also adds to the cost. Another reason is for such expensive items, there is more room to show your negotiating power at a local store. One more reason is return of a damaged item is comparatively easier at a local store than an online store, imagine if they ask you to do the shipping all by yourself Imagine repacking a refrigerator at it was already!
Things like a gadget/ mobile, laptops, digital cameras, computer accessories, books etc are something people don't really have the need to feel them in their hands before buying. From online seller point of view, they are small, so shipping charges are less. Connecting the dots to the recent news, the damage is also less when people cancel COD of large items at the time of delivery.
There are few things people would still like to see, touch, feel and then buy. Atleast I do.
Ex: Car, Bike, TV, Refrigerator, Washing Machine, Sofa etc. The online sales might have not viable enough for them to sell TVs and other heavy appliances, more so when shipping charges are comparatively higher (local store normally have to carry the item for about 1 to 15 km for delivery). Moreover insurance also adds to the cost. Another reason is for such expensive items, there is more room to show your negotiating power at a local store. One more reason is return of a damaged item is comparatively easier at a local store than an online store, imagine if they ask you to do the shipping all by yourself Imagine repacking a refrigerator at it was already!
Things like a gadget/ mobile, laptops, digital cameras, computer accessories, books etc are something people don't really have the need to feel them in their hands before buying. From online seller point of view, they are small, so shipping charges are less. Connecting the dots to the recent news, the damage is also less when people cancel COD of large items at the time of delivery.
goyal.sanchit
New Member
Flipkart has exited the large appliances Business "as of now". As per their statement they plan to enter once again once they develop the capability.
As per my readings somewhere, the big chain retailers like reliance, croma have approached companies not let on-liners to sell products (at cheaper prices)
May be related.
Edit: here is the news.
Online gadget deals hurting retailers: Future Group, Reliance Digital and others seek strict pricing policies - Economic Times
May be related.
Edit: here is the news.
Online gadget deals hurting retailers: Future Group, Reliance Digital and others seek strict pricing policies - Economic Times
koushik
Well-Known Member
Santy has some very good points. Even I wouldn't think of buying a tv, fridge or washing machine online. Its just not safe enough as the sending the faulty items is a big bigg headache.
Thing whose model number is good enough to choose would get sold more often. Whose color, looks, shape size doesn't really matters.
Thing whose model number is good enough to choose would get sold more often. Whose color, looks, shape size doesn't really matters.
Last edited:
This maybe irrelevant but since we are talking about Flipkart I thought I would bring it in. They have stopped their music download service as well. The reason, I could only think of not making profits. The email I received did not mention anything about this being temporary or of the possibility of them returning to the business in future. I am not sure how licensing for music work in this scenario and if they were not making enough money. iTunes store selling content in India could also have something to do with it.
Or, it is just that people are just too used to getting things for free. If so, then it is shameful, especially because I enjoyed buying albums from their store.
Or, it is just that people are just too used to getting things for free. If so, then it is shameful, especially because I enjoyed buying albums from their store.
Definitely they were not making enough money from FLYTE, I have noticed that the iTunes price are higher than Flipkart, e.g. Flipkart were charging Rs.9 and iTunes is charging Rs.15 for same song. I guess they don't want to stop their services 
and want to earn more money as possible.
and want to earn more money as possible.Definitely they were not making enough money from FLYTE, I have noticed that the iTunes price are higher than Flipkart, e.g. Flipkart were charging Rs.9 and iTunes is charging Rs.15 for same song. I guess they don't want to stop their services
True, I have checked the some and precisely why I preferred Flyte over iTunes store. With Flyte I also had the option of choosing which bitrate I wanted the file in, something which is difficult to find in iTunes store.
I so wish for Flyte to be back.
True, In Flyte we had an option to make our preferred choice (64kbps to 320kbps) default but IMHO I guess paying Rs 15 or sometimes more for ONE mp3 SONG (which is lossy format) is not good. To increase their sale they should think on that.
Consumer Durable today account for 34% of Indian Online Market but still does not account for even 10% of total sales of e-tailers selling multiple products and brands. The reasons for Flipkart moving out could be different. For Online portals the biggest challenge is to set the logistic piece right , next is inventory of the goods and last is shipping cost. E-tailers are expected to have wider variety and range of products than any other RE-tailers. Flipcart seems to have lot of customer issues and complaints in last few months because of the deliveries and non availaibility of the products.
Logistic failure / issues with shipping partners / High Shipping Cost could be one of the reason
Inventory Management at One Place is another factor
Thin Margins is yet another challenge for E-tailers . Reliance / Ezone / Croma online shops might not have these issues because they have retail shops and warehouses in different cities to cater to the online demand
Flipkart seems to have entered into apparels and accessories biz recently and this segment accounts for higher profitability and bigger volumes. Focussing into more profitable segments and moving out of CD could be another strategic decision
Flipkart if I am not wrong is also funded by Venture Capitalist and at the end of the day its all about Turnover and PAT in the balance sheet
Logistic failure / issues with shipping partners / High Shipping Cost could be one of the reason
Inventory Management at One Place is another factor
Thin Margins is yet another challenge for E-tailers . Reliance / Ezone / Croma online shops might not have these issues because they have retail shops and warehouses in different cities to cater to the online demand
Flipkart seems to have entered into apparels and accessories biz recently and this segment accounts for higher profitability and bigger volumes. Focussing into more profitable segments and moving out of CD could be another strategic decision
Flipkart if I am not wrong is also funded by Venture Capitalist and at the end of the day its all about Turnover and PAT in the balance sheet
Last edited:
May seem far fetched but the push from the big retailers and also may be Grey import rumors have something to do with this decision. Logistics is big cost component in any business but these retailers normally do a tie up with couriers or delivery services and insurance as well. They keep per product margin a bit less as:
they don't need to spend on outlets
They source at a lesser price (this is the source of Grey rumors even though govt import rules doesn't allow such bulk import)
they don't need to spend on outlets
They source at a lesser price (this is the source of Grey rumors even though govt import rules doesn't allow such bulk import)
It's a sad thing to see the Home Entertainment Category go. But I am thinking, if other sites like Infibeam, Tradus etc can manage these products, why can't Flipkart do it. But there are too many news about Flipkart lately, from job cutting to closing of their much-loved Flyte music store. Speaking of Flyte, I really hate to see it go. The collection, pricing and quality just suited my needs. Now, if only iTunes provide MP3 than their unfriendly m4a format, coz it has awesome collections.
Last edited:
Thad E Ginathom
Well-Known Member
Didn't Flipkart enter those markets only when it acquired Letsbuy? Maybe they just found it was a mistake for them.
Quite agree with your view. BTW, I loved your signature and I am stealing it.
Thanks,
Saket
Check out our special offers on Stereo Package & Bundles for all budget types.
Similar threads
