Flipkart - the Indian E-Commerce with the W on Amazon

As of the financial year 23-24, over 75% of India's $125 billion-dollar e-commerce market was held by just two competitors - Flipkart, at 48% , and Amazon, lagging behind at 31% . It's also projected to lead in a market that's expanding rapidly in India, expected to grow at a CAGR of 18% per year, growing bigger and bigger. Immediately, it would seem that Flipkart, a startup only emerging in 2007, would be the disruptor to a market held by Amazon - but surprisingly, in 2012, when Amazon first entered, Flipkart held the majority of the market. Despite Amazon's growth from just 9% initial market share to 31% market share now, Flipkart has recently been able to keep a strong hold. How are these customer-obsessed companies competing, and what does that mean for us as users, and how similar are they, actually?

Surprisingly, both companies have a unitary foundation that's been driving their growth - "customer obsession." Both companies have an aggressively customer-driven approach, focused on providing goods that their customers would want with an experience built for retention - both have invested heavily into developing their mobile apps, and in designing robust logistics for fast delivery. These enable them to function in a diffused market, where people may order from far-reaching rural areas and out-of-city regions.

However, in one key area for Indian consumers, Flipkart pays off - being low-cost. Amazon, as an international company and with the "Amazon Prime" subscription, is seen as a premium service, while Flipkart is the spot for lower-cost purchases that arrive quickly. While the Amazon Prime subscription uses a subscription model to provide discounts, Flipkart's main revenue comes from the commissions they make on the high volume of sales moving through the platform. With two competitors matched on everything else, perhaps it's price that wins.

For us as consumers, thinking about the choices made about the purchases we make on e-commerce platforms is important. Here's how to get started on a strategy to save money: https://readmomentum.co/episode-5-how-do-i-save-money/