Industry News

Flipkart started concentrating on Television sales, as it sales are increasing

India:  Flipkart is taking series of steps and measures to target at least quarter of the total television, which will be sold in the country in the next 18 months. The company believes that televisions will be growing at an increasing rate in the large appliances category, which also includes air conditioners, refrigerators and microwaves. The team will be led by experienced managers, and the company is tying up with some of large brands. Further, providing easy loans for consumers along with improved after sales service for installation of these appliances are some of the steps and measures that the company will be taking for increasing its sales.

From 31 million total smartphones, that were sold online in India in 2015, Flipkart accounted for almost half of those sales. The company is already dealing in television brands like Vu and BPL, and the company, recently tied up with Samsung, to launch a new TV on its platform, at a price of USD1,080. The company is also tying up with State Bank of India and Bajaj Finserv in order to offer lucrative monthly instalments schemes to the customers in order to boost sales of televisions.

According to a recent report published by TechSci Research India E-commerce Market Forecast & Opportunities, 2020, the country’s e-commerce market is projected to grow at a CAGR of more than 36% during 2015-2020. E-services segment, which comprises online travel, online payments, online classifieds, etc., is expected to continue its domination through 2020. However, the e-tail segment that includes electronics, apparels & accessories, health and personal care, etc., is expected to witness significantly higher market growth compared to e-services segment over the next five years. During 2015-2020, the western region is expected to remain the largest e-commerce market in the country. Major players operating in India’s e-tail market include Flipkart, Snapdeal and Amazon.

According to TechSci Research, Flipkart is targeting TV segment, as the commissions rate of televisions is 6-9%, more than the commission rates for mobiles and tablets, which is 3-5%, thereby forcing the e-commerce to go for these products, for making more and more profits. Easy financing options, combined with improved after sales services, will enable the company to gain more and more customers in the next 18 months. Moreover, the company should also make proper advertising strategies, by targeting the exclusive stores of the companies, which are tying up with flipkart, to make customers aware about the new services that the company is offering.