Flipkart.com Going Out of Business, Contact Flipkart Mobile App
It was a highly controversial move when Flipkart acquire Myntra.com and make it mobile-app-only-player but within two months after the fashion e-tailer Myntra.com switched to an app-only strategy, Its parent company and India’s largest online retailer Flipkart too has decided to switch into an app-only player.
The company’s chief product officer Punit Soni informed employees at a town hall meeting last week that Flipkart will operate with only a mobile app from September 2015.
Flipkart’s planned phase-out of its web based presence indicates phenomenal traction among Indian consumers to shopping through the mobile app thanks to exponential growth of smartphones and mobile internet.
The majority of its customers felt that what India’s largest online retailer was planning would have an adverse effect on it. Many said they would stop shopping on Flipkart.
But some analysts and investors say there’s logic to Flipkart’s move. “The world has moved from desktop-first to mobile-first and desktop as add-ons. If you’re in the consumer internet business, you have to be mobile-first and possibly be mobile-only ,” said Sanjay Swamy , managing partner in seed-based VC fund AngelPrime.
The same thing all these specialists told when Myntra.com goes app-only and now Myntra returning warehouse stock merchandise to their vendors.
About the September plan, the Flipkart company did not deny it. It said, “India is gradually transitioning from a mobile first to a mobile only country. At Flipkart, we have been following a mobile first approach and 70%-75% of our total traffic is already coming from our mobile app. We are constantly experimenting with various aspects of our service to create the best shopping experience for our users on our app. Meanwhile, we continue to offer both desktop as well as mobile option for our customers.”
Flipkart has 45 million registered users clocking over 10 million daily visits, and expects to more than double the gross merchandise value (GMV) of the products it sells on its platform to $8 billion this year.The company raised $2 billion in 2014-15, and it was valued at $11 billion in its last round of funding.
Here is the starting point of problem, when any company get funds from external source and burn out cash with the profit margin strategies, HOW THEY CAN SUSTAIN with a business which making loss of USD 1.35 on every USD 1.00 sale.
The biggest Indian e-commerce companies such as Flipkart Internet Pvt. Ltd and Snapdeal.com are piling up losses as they spend on advertising, discounts and engineering talent, with Goldman Sachs estimating that companies on average lose $1.35 for every dollar of goods sold in India.