Flipkart will soon come in a big problem

Do not companies send a REP. to explain the functionality of white goods / refrigerators upon first-time-buy. When I got an LG LED, 2 years back, they sent the installation team. I did mention that it was a FK purchase, but they hardly cared.

Yup, OEM's always send their reps. No matter if you buy from authorized/flipkart or even black market. You just have to make a call , that's all. They give the demo and tell you every specs if you are into that.
 
in one way, flipkart is destroying the competition, at online level as well as local level, and when it get itself destroyed, it will lead to monopoly of some other store.
I don't agree with this. Okay, lets assume FK gets destroyed. Now its solely Amazon's monopoly. And one fine day, they stop giving discounts. Then what stops anyone go buy from B&M?

Lets assume an extreme case. There are no B&M's at all and hardly one or two. Now people have no choice but to buy from Amazon. Now what stops anyone to start a new B&M and sell them at MRP itself. If price at Amazon and B&M is same, I would prefer B&M only.

Lastly, worst thing can happen that we buy at MRP on Amazon, which are doing now anyways at B&M.
 
I don't agree with this. Okay, lets assume FK gets destroyed. Now its solely Amazon's monopoly. And one fine day, they stop giving discounts. Then what stops anyone go buy from B&M?

Lets assume an extreme case. There are no B&M's at all and hardly one or two. Now people have no choice but to buy from Amazon. Now what stops anyone to start a new B&M and sell them at MRP itself. If price at Amazon and B&M is same, I would prefer B&M only.

Lastly, worst thing can happen that we buy at MRP on Amazon, which are doing now anyways at B&M.

1) Flipkart before getting destroyed, it will ruin the whole local market B&M, shops will be forced to closed first, and flipkart will die in later stage since their pocket is filled with loads of money as of now. so how you get the option to visit any B&M store, since there won't be any surviving in the market.

Also B&M stores gets years to get settled down and get their target customer, its not like online shop who gets tons of fundings from banks and FII's, then spend millions $$ on adsense, facebook, google plus, just to attract visitor and show them 100 rupee item.

All B&M stores are not greedy, you will find loads of shop which might give you good discounts throughout the year, after keeping their margin, but they won't undercut their cost price ever, thinking that you will buy items from them daily.

Just try to open a single store of your own, and tell me how much any bank is ready to finance you, without including any of your property of your family background,

Lemme tell you a story :D :D

A new forum get launched called techenclave2 owned by being.smart (since he got fii investment of 1 crore to start a forum), he promised 1 lac salary to all mods/super-mods, so all staff went to his forum to work, TE left with only admins finally shut-down their forum and went away, after 1 year being.smart came to know, he ain't making any profit paying 1 lac to all member, so he declared bankruptcy and made the forum a search engine for price checking. All staff fired, now they don't have the option to for to TE also. So they might commit suicide or some other will went to erodov to work at 10k

*Still saying i might be wrong at many place, since i am not very good at financial matters :D
 
^^

The staff can still open a new forum.

If B&M shops cant keep up with e-commerce. They should step aside/roll over/pull shutter/sell out/re align themselves to online/realign as a distri or something.
If an online shop becomes monopoly, let them. if they are bad someone else will take their position. If online dies, anyone with money or will can start a B&M shop and go back to good old days. Who is stopping?
There is no need to support the current crop of B&M people. If the online shops are bad, we will support the next wave of commerce. Online or B&M or direct to home.

There are people to bankroll the ecommerce because there is significant cost and overhead to setup a successful start up. Its a huge undertaking. There is money to be made.

And speaking of B&M shops. Its not a correct statement just to say B&M shops. I live in US, here tonnes of people including me still go to B&M shops. Why? They give better price and experience sometimes.
Ecommerce doesn't mean the end of B&M shops. It just mean the end of monopolistic behavior of Indian stores. Those who are VFM will still be VFM.
 
@m-jeri , yeah staff can open new store, but who will provide investment, it will take another 5-6 year to reach TE level, by that time they already lost their good times of life. who will pay salary for 5-6 yr, which will normally take to make the forum profitable, would you like to start from zero in your life 2-3 times ?


i am not saying stop ecommerce shop, but limit their activity what they are doing these days. Manufacturer should provide items at same cost price to B&M stores as that of of estore, with negligible diff of 5-8% , also discounts offered by manufacturer to this estore should match with the discount offered to B&M retailers, and estore shouldn't be allowed to undercut cost price by paying from their pockets, just to attract more customer to show more turnover to attract more investment.

Lets make the ground equal for estore as well as local store, the estore will have uphand in showcaing 1 lac product, while local store have benefit in proving hand-in experience, so both will get their equal share of biz, in accordance to the customer.

I don't have any idea of USA market so can't comment about it.

Lemme tell you real example, search any woodland shoes in online estore, there won't be any discount, or hardly discounts on it, this is because of the reason, woodland had warned each and every company, that if they provide any additional discounts other than which is offered, they will stop supplying stocks to them.Discounts offered online match the same offer offered in local stores. This came out as a result of woodland store sales getting tanked due to estore discounts, and setting up each woodland store requires investment of 30-50 lacs.

This is the reason why brands like K-lounge, Donear, Siyaram, Raymonds don't offer stocks to e-store, since they do know how they can easily destroy their brands.

Many people support estore now, just because they are offering handsome discount, not because they are offering wide range which might be available locally, or they are able to order to home, offer same price for same items, both type of biz will find their own customers.

Try to look from business personal perspective as well as from consumer perspective.

if any estore want to offer heavy discounts, manufacture your own product, and give them for free to user, and then show how you survive the market. They are currently providing subsidy on premium brands, which normal user cannot think to buy on normal MRP
 
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I said

anyone with money or will can start a B&M shop and go back to good old days

And also, whatever you said is applicable to eCommerce also. If not more is applicable to eCommerce. B&M shops can never match the reach, price or scale of eCommerce. So there is no level playing ground.
It will only be suited to B&M. So its not required to be done.

I as a buyer, don't care what happens to anyone as long as I get treated properly and get good deals. If B&M can match it somehow, good. Else close the shop. Easy for me to say. How the shop keeper takes it, I really don't care.
Does he care how much I make? Does he care about me loosing money? Why should i care about him?.

Any eCommerce site as a whole offer better variety, price, service than 99% shops. So that 99% deserves to be closed. Rather than crying wolf and making the eCommerce suffer.
 
In another two years, either FK will open physical stores and provide facilities like order online and collect at store in two hours... OR it will taken over by some big fishes like Best buy...
 
This is the reason why brands like K-lounge, Donear, Siyaram, Raymonds don't offer stocks to e-store, since they do know how they can easily destroy their brands.

There are some facets to this point:

1. Brands which are common names and have created IP which is commendable are trying to hoard onto the mantra: high price (locked price) == high brand. That used to work probably 10 years ago but is now a fail. Consumers are way more intelligent now, and like to understand the innards of a product and then equate it to an equivalent price - point. This is some what applicable (keep the brand value high) for electronics (Sony), mobiles (Apple) and to a certain extent motor vehicles. Now the above brands are not designer wear off the ramps of Paris...? Are they..! Price hoarding is going to get them no where. Raymonds' is a damn good line. I love getting my suits stitched there, and custom made shirts. Consumers are really into comparison and a bulls - eye for price to product quality.

2. The brand value band wagon has to be mounted carefully. What I mean here is that: We Indians have a top 10 list engraved in our minds. Tata, Maruti, LIC...8...10. When products from these brands are shown we get a comfortable feeling of warmth and we feel confident purchasing -almost- a blind buy. This all is drastically changing. The shift is minute, but many drops a day will fill the bucket in a couple of years (or a decade)....! Specially in the hyper urban pockets. Now when these brands stick to archaic methods they are actually undermining themselves, from within. The consumer populace is not even touching them.

3. Potential buyers have to be shown value for the product they are divulging in. There are two ways to do this. At the basic, core level. 1) Create an extremely robust product, which is feature rich, and does what it is supposed to do in an "excellent" fashion. A good example of this would be the Amazon Kindle. 2) Create a "normal" product (does what it does, but so do many others) and keep an aggressive price-point. First-mover advantage is a fictitious concept these days, so tight pricing is mandatory. See how Samsung (lower / mid end) phones flourished and how BlackBerry slowly diminished to never-land. These two options are in the hands of the price settings teams; ie: the manufacturer (or owner). The third way to do this (which is subconscious) is harnessing the subliminal faculties of the human brain. These are (not exhaustive, but potent): marketing (create hope and a false sense of goodwill and confidence); abstraction (use such language and rhetoric that the common man is flabbergasted and confused, but impressed. Example: 1 Billion Bravia pixels. Or HD ready. Or Quadphonic Sound during the LP era); deals (bundle of products, so more is more and delightful); low pricing / hyper sales (bang for buck - BFB); and probably elusive allure (create a product niche, which makes ones feel, that they have accomplished a deed when purchased, when in reality they just blew up boat loads of cash). If you see the above points: some parameters are direct product owner controlled, but some are vendor controlled. It is at this pivot point, that choices start to flourish. If someone can offer you multiple choices for multiple products (basically options) then: product type x brand x purchasing options = a huge gamut of values and metrics which a product can be weighed against prior to procurement. It is the "purchasing options" parameter where the B&M set up is miserably faltering and failing, and refusing to budge from their ideology and mind set. There has been a constant evolution in marketing, consumer sense, brand value, consumer rights, returns of products, exchange, and last but not the least pricing, but I fail to see B&M migrating from the 1980's (India) model. Instead of trying to work with the retail chain --> from the product line, they have gone rabid against their own kin: the e-Commerce portals. As I mentioned before: a sale is a sale. They have to create wiggle room for themselves (if they are so locked down by distributors and OEM managers) and rejig the scenario. That is the only way. What they are trying to do to FK is a bad business practice. They want to eat the whole pie (which they have as it is), they cherry too, and keep the empty mold.

The biggest looser will not be B&M and/or e-Commerce, but us.

:)
 
There is a world where the both can exist and each of them making money. All B&M have to do is to make sure they treat the customers properly and even if an item is priced a little (Reasonable) higher than online it would still continue to sell more.

E.g. I would happily pay 500 more to B&M shop if they can treat me properly and match the services Flipkart offers (Read Replacement Warranty) and ask me for a glass of water during the purchase. I would still be happy with them existing.

Flipkart and Amazon should continue this war for another 50 years and I will be very happy :p
 
@asingh how come your english is too good :(, please give me some tips to improvise myself :(

i am also in support of retail chains in comparison to traditional B&M stores, but still no retail chain will undercut their cost price just like flipkart does for many items, i am against this thing only, why you are selling your product at loss, sell at minimum 20% profit :D

visit any reliance digital, croma store, lotus store, all of them offers item at almost same price, and only negligible difference is there between local market price and there price.
 
@asingh how come your english is too good :(, please give me some tips to improvise myself :(

i am also in support of retail chains in comparison to traditional B&M stores, but still no retail chain will undercut their cost price just like flipkart does for many items, i am against this thing only, why you are selling your product at loss, sell at minimum 20% profit :D

visit any reliance digital, croma store, lotus store, all of them offers item at almost same price, and only negligible difference is there between local market price and there price.

Let me tell you the difference of a mobile phone which I got recently.

Croma = 45K
Reliance = 48.6K
Eventual Purchase = 40K.
 
Flipkart after the big sale day have stopped all the good discounts completely , no electronic items discounts at all , I was thinking of buying the moto x 1st gen on some discount below 17999 but nothing at all for the past few days , will wait till diwali or then if no further price drop let it go . I think they are running scared now and amazon is playing the conservative game .
 
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