Is Flipkart deliberately making losses?
A recent TOI article says that Indian e-commerce is in dire need of money. Companies like Flipkart and other major ecommerce players would find it difficult to survive unless they raise about $150 million from investors in the next few months.
Flipkart began by offering great reduction in delivery time and reliability, thereby winning consumers's trust. I'm believing that they're offering offered items at heavy discounts to attract consumers and gain a market share. The company has already began increasing prices and at times has offered goods at more prices than the competition. Flipkart's also raised minimum order value to Rs. 500 from earlier Rs. 100 for free shipments.
Do you think Flipkart's is deliberately making profits now to gain market share and then increase prices later to make money from loyal customers? Is that business model sustainable?
Flipkart began by offering great reduction in delivery time and reliability, thereby winning consumers's trust. I'm believing that they're offering offered items at heavy discounts to attract consumers and gain a market share. The company has already began increasing prices and at times has offered goods at more prices than the competition. Flipkart's also raised minimum order value to Rs. 500 from earlier Rs. 100 for free shipments.
Do you think Flipkart's is deliberately making profits now to gain market share and then increase prices later to make money from loyal customers? Is that business model sustainable?
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