Flipkart made a comeback into a leadership position at a time when it seemed Amazon would run away with India's multi-billion dollar earnings-commerce market.
Flipkart, India's largest online retailer, made it evident that the turnaround which began after beating Amazon with its Big Billion Day (BBD) sale in October will sustain. Flipkart made a comeback into a leadership position at a time when it seemed Amazon would run away with India's multi-billion dollar e-commerce market.
Clocking gross sales of more than Rs 2,600 crore in December and January backed by smartphone sales Flipkart Internet Private Limited outsold Amazon Seller Services Private Limited which achieved close to Rs 2,300 crore, according to a report in Mint. The figure is significant as it excludes Flipkart’s fashion arms Myntra and Jabong, which if included, would sufficiently prove Flipkart’s dominance over the market. Gross sales reflects the value of goods sold on the site, before product returns.
“As a policy, we do not comment on sale numbers. However, as a market leader, we continue to grow the e-commerce market in India through India-centric innovations and by continuously improving customer experience. We are focused on delighting our customers across the length and breadth of the country by bringing the best selection of quality brands and products at affordable price points,” a Flipkart spokesperson told Mint.
Flipkart saw a sharp increase in its monthly sales for the past two months after BBD. Before BBD, Flipkart’s monthly sales ran up to around Rs 2,000 crore. Before BBD, Amazon played the bully over the e-commerce market.
With strong performance as a backing, Flipkart is perfectly placed for a fund raising bout, which was long due. Just a year ago, this proposition seemed improbable, given Amazon’s unmatched rise in the market together with markdowns by Flipkart’s own investors.
It is interesting to note that this new found success in the marketplace came when there was a rejig in top deck roles. Kalyan Krishnamurthy replaced Binny Bansal as Flipkart's new chief executive officer last month. Krishnamurthy joined Flipkart coming from it’s largest investor Tiger Global Management. Prior to the appointment Krishnamurthy held a largely indistinct role of Head—Category Design Organisation.