Walmart-controlled online retailer Flipkart has transaction growth of more than 80% in some months as e-commerce is booming again in the country, and the company plans to push newer categories such as furniture and groceries over the next three years.
In an interview with leading business portal, on Tuesday, Flipkart CEO Kalyan Krishnamurthy said that the online retailer is at least “twice the size” of its nearest competitor, implying Amazon. Amazon India chief Amit Agarwal had in a recent interview dismissed those claims, saying that Amazon did not have time to focus on “unsubstantiated claims.”
Krishnamurthy also indicated that Flipkart may either partner with a video content firm or build out its own content offering, as part of Flipkart’s broader loyalty programme, which was launched a few months ago.
“Furniture is a small market, so I won’t take pride in saying that we’re number one there. There are only 3-4 players. What is unique about the furniture business is that it’s heavily built on private labels. Everything will expand there. The reach of the furniture supply chain is way lesser than that of eKart in general. So, that has to go up. The cost structure will improve, the experience will improve, so all of that will improve,” said Krishnamurthy.
“Grocery is by far one of the most difficult businesses we have launched. In Bangalore, we’ve seen a huge amount of customer adoption and a lot of learnings. So, right now we’re in four cities. Today the grocery business is primarily about the monthly basket approach. If I look at that market versus the on-demand market, it’s about 80% in favour of the monthly basket purchase in India. Does that mean we will not get into the on-demand business? Once again, that’s another business where globally more people have failed than succeeded. So, we’re very cautious of that and when we do it, we want to do it the right way…In the long-term, we might not have an online-only approach (in groceries) — we will partner with the ecosystem…any kind of tie-up or partnership is possible,” added Krishnamurthy.