Friday, September 16, 2011

An Opportunity Missed?

http://www.nytimes.com/2011/09/15/business/with-no-amazon-as-a-rival-flipkart-moves-fast-in-india.html?_r=1

It was interesting that Amazon missed such a colossal opportunity—to capitalize the growing online retail market in India. The key would have been to alter their business model to adjust for consumer preferences and understand how consumers purchase online. A doppelgänger, Flipkart, has managed to do just that and created a system where customers could purchase online and yet pay only on delivery, either by cash or by card. Low labor costs, of course, have been immensely invaluable in setting up such a system of collection and delivery. Flipkart also doesn’t rely on the traditional courier services—instead they have their own delivery department, making it easier and more comfortable for the customer to interact with the company, especially in cases where they are not familiar with online retail.

The key will be to keep up with competition—everyone seems to be joining the “e-commerce” platform and creating products and services that are similar to already successful and established ones. Currently, Flipkart’s biggest threat still remains Amazon—but the key to success will lie in which is able to understand and cater to the Indian consumer in particular.

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