Softbank’s infusion of $2.5 billion in Indian E-commerce giant FlipKart has given the firm to raise its business. It will also help the E-commerce giant to take on it’s rival company Amazon India.

 

Flipkart’s Business goes high

Experts in this field now believe that apart from increasing it’s business in fashion category through infusion into Myntra, Flipkart will now increase its investments to build strong private labels with an eye on improving gross margins.  It has now committed to spend $500 million to grow its food products and perishables vertical with clearance on FDI.

 

Flipkart’s acquisition plans

I think they have realized that they will have to execute better and do lots of innovation to give a fight to Amazon. For this, Flipkart might acquire somebody who can make a difference to execution or few tough categories where they are weak such as furniture, baby care and FMCG,” says the founder of an online commerce company”.

 

Building a supply chain
A securing in these verticals will unravel the trouble of building a supply chain for these specific classifications. “To match up, Flipkart will have to invest at least as much as Amazon, and grocery will be important to increase wallet share,” said Satish Meena, senior forecast analyst at Forrester”. Says  Satish Meena, a forecast analyst at Forrester.

 

Reviving FlipKart  First

The company is planing to revive Flipkart First, a program similar to Amazon prime which provides priority shipping, free next day delivery and priority access to deals. “With the new round of funding we will see Flipkart expand its portfolio. It is likely that the company will revive Flipkart First programme as an answer to Amazon Prime apart from a strong push on private labels in the categories of small appliances and the Billion brand” Meena further said.

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