Thursday 29 June 2017

Flipkart, Myntra obsessed with innovation; is this the reason for its ecommerce leadership?
Home-grown ecommerce firm Flipkart recently confessed about its obsession with innovation, which has also spread to its other entities like Myntra. This fixation is the driving force behind constantly augmenting customer experience.

Customer experience over everything for Flipkart

Fresh after the success of its combined pre-GST sale event, the etailer along with its fashion arm is keen on working on creative strategies to maintain or improve buyers’ shopping experience on its platform.
Ranjith Boyanapalli, Vice President of Product at Flipkart affirmed,
“At Flipkart, we’re obsessed with innovating to ensure the best in class customer experience which is the key differentiator that helps Flipkart stay on top. We sift through vast amounts of data and research every day to learn about our customers, listen to them, understand their pain points and alleviate them. Besides, customer focussed group discussions keep happening at Flipkart.”
Flipkart’s past innovations since its inception include cash-on-delivery mode of payment, No Cost EMI, Buy Back scheme, and Product Exchange program. Developing its artificial intelligence wing is also one such move. These strategies helped Flipkart to differentiate its business from competitors.

Myntra’s innovation – Loyalty Program

Myntra’s thoughts are aligned with its parent company Flipkart. In May this year, the fashion etailer experimented with full-price sale events, which is first of its kind in this discount-obsessed ecommerce industry.
The company is now planning to launch a loyalty program in less than 2 months. The inspiration could be Amazon Prime but Myntra’s CEO says the program won’t be like Prime.
Myntra’s CEO Ananth Narayanan revealed,
“We are actually thinking of innovating around a loyalty programme, which you should see come out in a month and a half. It won’t be like Prime, but it makes sense to have a loyalty programme. We’ve been working on it for two-three months.”
Myntra’s EORS June 2017 edition ended on a high note as it witnessed 56% growth. With its loyalty program, the etailer hopes that the growth will accelerate even further. While Flipkart’s loyalty service failed to gain momentum against Amazon Prime, fashion arm Myntra believes that things would turn out differently for them.

Focus on customer experience and innovation paying off?

According to South Africa-based MNC Naspers’ report, Flipkart is the Indian ecommerce industry’s current leader. Naspers claims that Flipkart’s contribution to the industry’s monthly gross merchandise value (GMV) stands at approximately 57% (March 2017). Naspers is one of Flipkart’s investors and holds 16% stake in the company.
The high GMV contribution could be the result of Flipkart’s obsession with customer experience and innovation. But rival Amazon strongly disagrees with these stats and isn’t buying any of the claims made by Naspers report.
The US-based ecommerce giant’s spokesperson said,
Based on standardized monthly reports, we know for sure that we are leaders on things that matter to customers and sellers. As there are no credible third-party sources for segment share, we do not comment on speculations.”
Will the real Indian ecommerce leader please stand up?

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