Flipkart.com : E-commerce Trend & Analysis

Recently, a big deal has done in Indian E-commerce Industry, Flipkart which is one of the leading online e-commerce brand in India has acquired Myntra.com fashion online retail brand. As both brands Flipkart & Myntra.com incorporated in India 2007.

Acquisition Journey by Flipkart.com:-

  Ø  WeRead in 2010 (Social book Discovery Tool).

  Ø  Mime360 (Digital Content Platform) and Chakpak.com (Bollywood News Site) in 2011.

  Ø  Letsbuy.com in 2012.

  Ø  Myntra.com (Fashion retail brand) in 2014.

E-commerce trend is growing in India and number of consumers are being increasing in online shopping due to Smartphone users as well as internet users are being increasing too simultaneously. Today total e-commerce market in India $2 billion appx and is expecting to whop over $20 billion by 2020.

Key highlights, survey & analysis of E-commerce in India (Fashion Category):-

             

From the overall analysis, I would like to carry on my concept & strategy on E-commerce is that must focus on strategy “Convince + Convenience” towards consumers/buyers. Because in India, consumer preference and psyche towards buying any product is very different. Though, today consumers are buying various product through online in specific category like books, computer & electronics items, apparel, movie ticket etc. and however, it becomes an essential to focus more on other categories where estimated sales ratio is not moving.

Consumers are not ready to buy in-spite of  they are well-aware with online buying system as well as availability of those branded products in better price which they want to buy.  Why? Because they are not feeling convenience & satisfaction level compared to offline buying.

You will find upright growth in categories like computer & accessories items, books, movie tickets because target audience know well about those items & having confident so, they will buy online easily & regular base. Whereas other categories like fashion, electronics items, eye care, healthcare, cosmetics, kitchen appliances etc. in which target audience know that branded items available online in better price however they are not ready to buy because of lack of convenience & buyers are not getting physically touch & feel of those products. Buyers have to take decision only on virtual & featured description base as it has given online.

However, marketers are consistently trying to cover market through online & increase consumers’ base. Now, Flipkart will expand it fashion portfolio along with Myntra.com & targeted to invest appx. 100 mn on fashion brands in order to lead in fashion category & rival Amazon.com which has launched in India since 11 months.

There will be two core strength of Flipkart & Myntra.com after acquisition:-

(1) Consumers satisfactory level is high by providing prompt doorstep services with offered brands & replacement guarantee as per policy.

(2) Myntra.com having extensive ranges of fashion brands

There is vast opportunity & untapped e-commerce market in India but the only significant role is to provide conveniency towards target audience. Once they feel it, easy to convince & they shall getting confidence during buying decision, as well consumers’ satisfactory level will become high automatically. 100+ e-commerce brands (sites) are available globally but success & leading only few out of them.

Today, Consumers are focus not only price, quality & brand but also desire convenience. Flipkart has vast opportunity in fashion category after acquiring Myntra.com but the only need to be focus on convenience strategy by offering innovative services. And, it can be threat for rivals Amazon.com, Snapdeal.com,         e-bay.com, jabong.com, yebhi.com etc.

Convince + Convenience = Success of E-commerce 

Sunfeast Farmlite by ITC

Brand Sunfeast from the house of ITC, has cultivated strong brand equity in biscuit industry as well as in consumers mind. Recently, it has extended portfolio in health premium segment and launched brand ‘Sunfeast Farmlite’ on 25^th April’14 at Bengaluru Airport. Sunfeast Farmlite is targeting health conscious people and it is available in two variants Oat & Almond and Oat & Raisin.

Brand launched with on ground promotional activity and distributed 1.50 lacs free sampling with simple message “Pick Me” at Bengaluru Airport. On –ground activity is one of the best strategy where you can connect direct end-users, brand reach level very high, generate strong awareness, get prompt review & feedback, brand recalling, and interact with end-users appropriately.

Being a premium brand, launching strategy has executed on right place where target audience are certainly available and formed farm sort of atmosphere which is related to brand essence & feel.

Bengaluru Airport - On ground Activity - Brand Launch

Brand Sunfeast Health Biscuits Portfolio:- Marie light, Milky Magic, Glucose & now Farmlite

Web:- http://sunfeastworld.com/farmlite.html

Today, health conscious segment is expanding and companies are launching variety of products in food & beverages category which is related to health conscious segment as brand extension. Companies are covering untapped market & develop new market by launching products in this segment whereas consumers too willingly ready & showing acceptance level up to some extent especially in India.

In India, within the 5 years many companies have been launched health conscious related brand in food, bakery & biscuits, snacks, beverages in order to change perception of consumers as well as fulfill consumers’ demand who are health conscious & suffering from disease like diabetes, cholesterol. The real situation in India is like “Consumers are buying products in food bakery, biscuits, snacks, beverages category but level of perception towards it very low or consumers are not consider as health benefit, they are buying and consider as just ‘Taste’. Even though brands like Kellogs, McDonald are being tried to change perception by launching products morning breakfast and McDonald have been launched morning breakfast menu in India though it has not been success as expected and acceptance level is there up to some extent but considering as healthy breakfast perception level is low.  

The same way in health biscuits category brands like Britania NutriChoice, Horlicks Nutribic, Mcvities Digestive, Parle Actifit Marie Digestive and few others are being targeted to health conscious consumers whereas Sunfeast Farmlite is targeting same but it is focused on premium/upper class segment. Moreover, price of Sunfeast Farmlite INR 50 of 150gm which is bit higher than rivals. Though, Britania NutriChoice having well brand image & value. However trying to cover & establish segment market.

Brand image, value and recognition can consider only when consumer perceived value towards it. Usually people are saying I like so n so biscuits/snacks etc. because overall good taste or like to eat with Tea/coffee etc. but only few or less people will saying that I like it because I am feeling good for my health or I can work much better etc. In India, when buyers asking about glucose biscuits, first name comes Parle-G. . Why? Because consumers having perceived value towards brand & feeling result of Parle-G glucose biscuits. Brand can become strong when consumer feel it and it value will increase automatically.

All health biscuits brands having an opportunity to build brand like consumers must feel & perceive value of brand. Let’s see how Sunfeast Farmlite will change consumer’s perception…

Product acceptance level + Consumer perception level high = Strong Brand Equity