Why is FlipKart offering so many Discounts?!

Posted on Posted in Business, Inspirations

From the past few weeks, if you have observed or have been a constant follower of FlipKart, one thing we can see is that there is a whole range of discount on the variety of products. That gets me thinking why so many discounts for an operation that is running so well, that too in such a frequent manner!

I kept wondering till someone mentioned the possibility of a competitor! That I believe comes here in the name of Amazon.in. I always wondered why the giant Amazon had not reached here and I guess it has and I was too involved in FlipKart to notice. Now the question is, Amazon is entering into a market which has already been dominated by FlipKart. It certainly is a tough task for them to brave the initial waters and get things working here but at the same time for a giant that has been in the industry for a while; they do come with their own strengths.

The Competition!
The Competition!

Now is this the reason why FlipKart is offering so many discounts? Yesterday there was a 60% off on all Puma products and the last week it was a 25% on books and if I remember well yesterday even the books went to a discount of upto 60% which was definitely surprising!

An offer on books. Too tempting I say!
A 60% offer on books. Too tempting I say!

I have been following them for a while and this is probably the first time so many discounts are being offered in such a short time! It takes me back to the concept of institutional pluralism.The concept was quite simple, instead of there being one service provider which leads to monopoly, when there are more service providers, each customer is a rational optimizer which means it is in his complete liberty to choose what deems the best for him, may it be the quality of service, cost, timely delivery, efficiency, etc. So the idea is that the business gets more customers centric and the advantages of course are in the form of increased efficiency, reduced prices, and improved quality of service cos neither of them can afford to lose a customer.

I am not saying that this is the only reason but I am trying to look at the possibilities, for a long time I am sure that FlipKart dominated the market, although they did it beautifully and I have been a personal fan of their work, Amazon puts in a new challenge. A bigger and an established brand coming in and the current brand would have to brave that and it brings along a few more challenges. All in all it has always been good news for a customer, cos now you have two choices for a simpler life and a door to door delivery, FlipKart or Amazon,it is completely your choice. Pick one or experiment with both, they may surprise you with more goodies.


Vinay 🙂

12 thoughts on “Why is FlipKart offering so many Discounts?!

    1. That’s very true Indrani, like you mentioned, the discounts can attract only the short time and floating consumer base. Ultimately quality of service would be paramount. And with competition, I am sure both of them would have to strive equally hard :). Which in the end is a win win for the customer 🙂

  1. Amazon is well known for their excellent customer service. I have heard good things about flipkart too :). It will be interesting to see these two retailers competing. If the competition is healthy enough then it is the consumer who wins.

    1. So very true macha. I am on board as long as they are good quality and service. Either ways I am not complaining, I am getting books at a good bargain and I know how nerdy it seems as I type this! 😀

  2. The competition is a huge part, but I’ve noticed other small yet significant issues with Flipkart. I think they are using their discounts to get rid of their stock, probably stuff that has been around for a while.a look through their books section and the number of items that are out of stock is astounding. I have also heard/read that their business model apparently has many problems and thus discounts would lead to higher quantity sales maybe to save and give the business model a new boost of energy.

    1. That’s a beautiful observation Raghav. It is a little saddening that it is similar to the stock clearance sales. I am with the idea as long as the promised quality is maintained. However I have never shopped for any apparels online, it has always been the books, the blessed books! But it does open up a good perspective to think about this!

      Thank you for sharing your thoughts Raghav, it certainly opens up a new line of thought 🙂

  3. I guess the discount part is a little dicey Shivram. I still like to believe that flipkart is a conscious company who would like to make a difference. They need to devise new marketing schemes to stay abreast of the market which is natural and right as well. Sometimes mistakes do happen, but I am sure they will mend it..

    As for the consumer companies, I think they will find ways to make peace with it. They cannot threaten either flipkart or consumers cos they are the ones who will receive flak for that and lose face..

We would love to hear your point of view