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.
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!
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.