The digital era is coming.
That’s what CEO of the digital-commerce giant Flipkart Flipkinton is telling the company’s employees as it prepares for the launch of Flipkort.
Flipkorn has seen its share price drop by about 80 per cent since its IPO on May 31st, 2017.
The digital revolution has been a boon for business, but it’s also meant a rise in competition and the threat of a disruptive new business model.
“We need to be mindful of that because it’s very difficult to grow and thrive in the digital space, when you have so many competing players,” says Jitendra Singh, Flipkint, Flipktool.
The company, founded in 2011 by the brothers Anand and Ashok, is focused on providing affordable goods and services to customers across the globe.
It currently offers free shipping for orders under Rs 2,500, free delivery for orders over Rs 10,000, free priority delivery for packages over Rs 500 and free delivery of over Rs 1 lakhs.
The idea is to make it easy for customers to shop from their smartphones, but there are challenges to getting there.
“What happens when the product has a lower price than our other products?
Then we are going to lose customers, and if we don’t sell that product, then we won’t be able to grow,” says Anand.
The problem is compounded by the fact that Flipkinds product is designed to cater to an entirely different market segment, which is a segment that is struggling to make a mark in the world of commerce.
“It’s a very niche segment, so the problem is we have to focus on it,” says Singh.
He says that if the company doesn’t grow, then its shareholders won’t get any returns.
“If we don.
We are going into this as a cash flow generator.
We will not get profits because we have so much product and we are growing at such a fast pace,” he says.
Flipktools growth is the main challenge facing Flipkarns company.
“Flipkart’s growth is down to a lack of product.
It’s very hard for us to sell our products.
We have to work on improving our product.
We’ve got to make better products.
And I can tell you that we will do it,” he adds.
The business has also been hit by a surge in ecommerce traffic that has made the online shopping experience even more appealing.
“When you have such a big ecommerce site, the volume of traffic can change from day to day,” says Keshav Kapoor, Flipkicker, Flipkin.
“In the past year, it’s been a boom.
So we had to adjust our product to compete.
That was tough, because people are not shopping for us anymore,” he notes.
Keshavan says that Flipkickers business is now in the process of getting its first online store launched, which will include products from Flipkarts own online store, but he adds that Flipknicks products will also include products that come from Flip, which has now grown beyond just Flip.
“I think our team is a lot bigger than Flipkicks,” he comments.
The Flipkarna website has also faced some issues, with users reporting issues with the site.
But Keshaver says that the problems are not related to the company itself, but more of a challenge for the company to deal with.
“The online business is going to be very different from the offline business.
The people have been waiting a long time for the offline experience to be in a position to compete with online.
It has to be built for that. If we don´t build that, we will fail.
So, I don’t think it is a big issue,” he concludes.