Flipkart started in 2007 and since then it has been on a roll. Major acquisitions and then being acquitted by the international giant in the retail businesses – Walmart, were the major highlights of the company apart from the millions of visitors it gets and products listed on the site.
The eCommerce company was started by Sachin Bansal and Binny Bansal which is headquartered in Bengaluru. Flipkart was acquired by Arkansas-based Walmart in 2018.
Although Walmart had a huge share in the international market, the retailer chain didn’t get the most of the Indian market. This was because Walmart stores required membership and not every common Indian could opt for it. But the decision of Walmart acquiring Flipkart skyrocketed the chance of Walmart making a profit in the Indian market. Walmart is reportedly the owner of 75% of the company’s stakes. That’s enough to make numbers move. Here is a graph of Flipkart’s revenue growth between 2017 and 2019.
The two companies – Amazon and Flipkart have their biggest grossing months during the sales each year. Last year, the two companies sold a record of Rs 19000 goods in the 2019 festive sale combined, 30% more than in the previous year as per a Reedseer report. The sales contributed 90% of the market share in 2019. Where the dominance was observed by Flipkart with 60-62%, Amazon contributed to 28-30%. A higher rate of purchase from Tier II and Tier III cities was also observed this year in the Great Republic Day Sale by Amazon and Big Saving days by Flipkart.
You can check out the discounts by Flipkart coupons page as they are going to start Big saving days. This sale is going to start on the 20th of January 2021 and would go till the 24th of Jan.
You might also want to check out GrabOn’s Myntra page too. Myntra is going to start their Right to fashion sale from 20th to 24th of January 2021.
Whereas the medium of promotion opted by both the channels is more or less the same, it’s interesting to see how Flipkart almost doubled the sales last year. Flipkart is also the home for many international product launches like the Google Pixel 4a that is coming to India this Big Billions Day Sale. Would it correct to say that Flipkart is the preferred partner for international product companies to launch their products in India? The Walmart partnership does really work here.
If we look at Flipkart’s numbers from the Big Billion Sale over the years, we see a powerful growth. The numbers skyrocketed in 2019. The sales on the first day of the Big Billion Sale in 2019 was 50% more than that from the previous year. Moreover, Flipkart also claimed 10 million additional app downloads the same year.
The difference in Amazon and Flipkart share that year was huge too. However, the combined number failed to reach the analyst’s prediction of $ 5 billion in sales. This year both the companies are all set with exclusive benefits and exciting offers on everything from electronics, mobiles phones, home essentials, and fashion, it would be interesting to see if Flipkart continues to beat Amazon in a consecutive year, or we get to brace Amazon against Walmart owned Flipkart.
With roping in of famous celebrities like Amitabh Bachan, Virat Kohli, Deepika Padukone, Alia Bhatt, and Ranbir Kapoor who are already associated with Flipkart, the commerce company seems to have cracked the way to seep into maximum houses. Also, past records have noted the increase in participation of people from Tier-II cities. This year it looks bigger than ever.
Myntra is here too with its Big Fashion Festival at the exact same time of the year. Myntra is Flipkart’s subsidiary (Flipkart acquired Myntra in 2014). This year’s The Big Fashion Festival is said to gain 2x traffic than the previous year and reach 150 million people across the country. Myntra comes under the bucket of Flipkart that Walmart owns. In the same way, Walmart owns Jabong and PhonePe which Flipkart had acquired along the way.
Past data suggests that although Flipkart holds more of the share during sales, one thing couldn’t be said for sure due to the present conditions and the ups and downs in 2020. Who do you think will get the most sales in 2020? Amazon, or Flipkart? Let us know in the comment section below.
