By: Dr Kumar Raka, Editor-ICN
NEW DELHI: Traditional marketing gradually has been taken over by the online retailers in the last decade especially for all consumables worldwide. We have witnessed intense competition in India also between various online retailers like Amazon, Flipkart, Snapdeal, Ebay, ShopClues, Paytm and many more. In last few years, Amazon and Flipkart have certainly emerged as leaders in the field. According to a report of British investment Bank Barclays, In the financial year ending March 31, 2018 Flipkart had a revenue of $ 3.8 billion (Rs. 26,925 crores) (excluding its subsidiaries Myntra and Jabong) that is 19% higher than Amazons $ 3.2 billion despite the fact that Amazon India had a much higher gross merchandise value (GMV, the total value of goods sold on a marketplace) than Flipkart (in financial year 2018, Amazon India’s GMV stood at $7.5 billion 20% higher than Flipkart’s $6.2 billion).
Anyone will be surprised with this simple calculation while the revenues of both the leading retailers are neck to neck why Amazon India’s earnings are far behind the Flipkart. Part of the simple arithmetic can be explained in B2C (business to consumer) and B2B (business to business) strategy which would be more easy to explain and understand with the example which I have recently experienced with a purchase from Flipkart. Before narrating my personal experience, it would be pertinent to mention that according to a news report of Economic Times (Nov 8, 2018), the All India Online Vendors Association (AIOVA), a body representing over 2000 online merchants had filed a petition To Competition Commission of India in May, 2018 alleging preferential treatment by Flipkart to certain sellers as well as unfair trade practices.
I have several years of online purchasing experience with almost all leading online merchandisers (Amazon, Flipkart, Ebay, Snapdeal and so on) from smallest items to largest and costly appliances. And until this recent experience with Flipkart I was always a happy customer. I had ordered a Smartwatch on Flipkart from seller ESSTEE which was delivered to me on February 8, 2019. After receiving the product I found that
- The product box was open (not sealed), which I could see only after receiving the product as the product box was inside a non-transparent polybag.
- The product delivered to me was a ‘Intex iRist’ smartwatch which was nowhere mentioned on seller’s page and is available in market on much lower price in new models.
- There were wear and tear marks on the product as well on its accessories.
- There were personal videos and photographs in internal memory of the smartwatch.
- Overall it was a used second-hand product and not as per descriptions on sellers site.
Immediately after receiving the product on February 8, I requested a return/replacement request online which was rejected by the seller without assigning any reason. Thereafter, I contacted Flipkart customer-care and again they initiated a return/replacement request on February 11 with assurance that the issue will be resolved by February 14 but yet again it was rejected by the seller. Again on February 14, I contacted customer-care over phone and written a detailed mail stating my grievances and attaching photographs of the used second-hand watch to prove my claim and again received assurance that the issue will be resolved by Feb 17, 2019. And finally on February 17, 2019 I received a mail from Flipkart Customer Care which is pasted below in the interest and awareness of public and consumers.
I am writing a reply mail to Ms. Aishwarya R of Flipkart customer support with the details they have requested but to my utter surprise neither the Flipkart nor the seller is concerned about the claim that there are someone’s else private videos and photographs inside the internal memory of smartwatch which I can paste here or on social media platforms to prove my claim but it is both indecent and breach of any individual’s privacy. Moreover, the fact that if it turns into a legal battle, the time and date of photographs taken and/or video recorded can be found easily but that is also seems not sufficient to give a buzz to Flipkart, the leading online retail Giant of India. One can see details of the photographs below that are still saved in the internal memory of the smartwatch.
How the customer who has been delivered the smartwatch on February 2019 can click photographs going back in Jan 01, 2014. Flipkart smart-watches enabling us time travel, worth buy at Rs 4,929. Elon Musk, Mark Zuckerberg and Jeff Bezos will be envying Bansals (the Founders) and Kalyan Krishnamurthy (CEO) of Flipkart.
This was important to bring into the notice of readers and consumers before further deliberating the concepts of B2B & B2C marketing strategies & AIOVA petition to Competition Commission of India in May 2018 against Flipkart vis-à-vis consumers rights.
To be continued…..
Dr. Kumar Raka is a social scientist and disaster management expert. He has served as former Consultant, NDMA, where he played a key role in raising, equipping and modernizing, training and capacity building of NDRF; former Planning Specialist & Head, Disaster Management, Noida Authority wherein he created a world record in DRR. He is an alumnus of Jawaharlal Nehru University, New Delhi and Tel Aviv University, Israel.