Saturday, September 29, 2012

Why even Reliance can't beat Flipkart now!!


Not sure if Reliance is planning to launch online store like Flipkart but here is my Perspective if they are planning one.

Reliance can put in 10 times the money what Flipkart has spent to build itself but it would be near impossible for them to capture higher market share (better yet Indian mind share.... a trust worthy image of Flipkart in our mind).

Possible reason:

1. Flipkart has this huge first-comer-advantage
2. Online retailing in India to most of us means Flipkart (mind share)
3. Their service, from whatever I have seen is impeccable. And because of which they have earned our trust (mind share)
4. And they seem to understand that they have to continue the pursuit to get more and more mind share and at a quicker rate than before (and I believe a large part of the money they have raised would be spent on that)

Their competitors are trying all sorts of marketing stunts (free vouchers, selling below cost to build user base, crazy repeated ads on TV, 100s of offers) but I doubt its working effectively.

But there is one way Reliance can beat them
If Flipkart screws up its service, that would build trust deficit for others to overtake them ( I hope they won't let that happen).

Another company which has huge Indian mind share is Cadbury Diary milk (“kuch meetha ho jaye”), makes it very difficult for competitors to outperform them. When I say Diary milk what comes to your mind “Premium Quality”, “Happiness”, “Licking your fingers J” , “Proposing a girl” , “Everybody love it”, “Apt for all celebrations”, “Good choice for a gift” ......... see they got your mind share.

3 comments:

  1. When you say 'premium quality' I immediately think (and reach for) Bournville than Diary Milk. Bournville redefined what premium quality means.

    But one thing I certainly agree about Flipkart is its amazing service. Also since there's hardly a possibility of a premium buying experience online, Flipkart wins hands down.

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  2. Mouli, Which parent company does Bournville and Dairy Milk come from? Its all Cadbury's! I wud say they're merely making sure, the mind share is evenly spread across its sub-brands..
    :)

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  3. Another way to beat flipkart is to get acquired by Reliance :)

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