Sunday, May 31, 2015

Myntra & Flipkart Move 'A Gamble or Strategic"

Myntra & Flipkart to go App Only

15 May, 2015 Go- App Only. This was the statement the customer started to see after Myntra decision to make a move to be available on apps only, means if a customer wants to buy something from Myntra, she has to perforce install the app on her mobile phone. There is no more a option to buy on desktop.

But its competitors are not going to follow the footstep initiated by Myntra. According to the experts it’s a premature move and that Myntra is unnecessarily killing the goose that laid the first golden egg. Not only this if news are to be believed soon even Flipkart will be doing the same. But why it is so. According to some of the Consultancy & advisory firms the e-commerce will soon be transformed into m-commerce as India is moving from a mobile-first country to a mobile-only one.

One of the oft-repeated reasons for Myntra moving to an app-only channel is its claim that 90% of traffic and 70% of sales is already coming from the mobile app and so in a way, Myntra is following the market. Means, two third of the online traffic along with, over a million shipments per month, comes from small cities & towns, specifically for products like Flipkart. Due to limited possession of desktops & computers people majorly visit the product website via the web apps though their mobiles and not the website.

The traffic from the mobile app might have grown from nearly zero to 70% in the space of one year but that doesn’t necessarily mean that desktop traffic has declined. There is still 30-40% of orders which originate from either desktop website or from mobile website, as not everyone is comfortable in installing mobile apps and tolerating the constant push-alerts and ads which these apps throw at their customers. This is valid to even my blog which attract more traffic from Mobile phone user but yes there are visitors that use its desktop. So while mobile traffic might be growing at a great clip, it is quite possible that desktop traffic has also remained stable and while it might not necessarily growing at the same rate, it might nevertheless be increasing.

If we check the world’s biggest ecommerce portals like Amazon, Ebay, Target, Costco, Alibaba, Ebay, Walmart, Etsy, Shop, Overstock, BestBuy etc, then we will find that all these portals are maintaining their mobile website, along with mobile apps and desktop website. And these websites are based in USA, where mobile penetration is highest in the world, and are much ahead in mobile usage compared to Indians.

We exactly don’t know the reason behind it. One of it can be potential for the mobile device to offer a more personalized experience for the shopper. There are of course a number of additional features and scenarios where a mobile app can provide an enhanced experience to the customer.

Since everyone is competing on the same dimensions and striving towards the same things– cheaper price, larger discounts and louder marketing spends. There is little to differentiate one company’s offering and so this move may to create a differentiation from others. It may also be a strategy to have a test by Flipkart. If it doesn’t work, there is still the Flipkart brand to fall back on.

Do Comment below your reason behind the Move.

No comments:

Post a Comment