For up to Date Offers and Coupons on Flipkart
It’s always the top 2 or maximum top 3 that end up being a success. If you are fourth or below you don’t count. That’s precisely why all of the companies in Indian tech scene are splurging money on acquiring users and retaining them. May it be in Food Tech, E Commerce, Fin Tech or Travel Tech, every company is burning moolah without even remotely thinking of profit. It has come to the point of survival. Keeping head above the waters is the need of the hour. Raise money, undercut the competition, rinse and repeat till the competition suffocates and breathes its last breath - the playbook of today’s companies. TaxiForSure getting sold to Ola is a testament to this modus operandi.
Both Flipkart and Amazon are playing this loss leadership game pretty well. They are laser focused at increasing Gross Merchandise Volume (GMV). Does that GMV translate to profitability? Neither of them are bothered about that. Not yet. GMV is the northstar. They offer such a steep discount that no consumer can say no. How are they able to offer such discounts? Investor money!
An offshoot of this spending spree is deals, offer and coupon sites like CartFight.com. Acquiring a new customer is one of the biggest problems which ecommerce portals face on a daily basis. Spending on paid marketing will cost them a fortune, besides consuming much of their bandwidth. To simplify the process of acquiring and retaining customers they offer coupons. Companies like CartFight.com keep a tab on these and inform users about all the deals under one roof. Whether it’s Flipkart offers or Amazon deals, CartFight.com offers the best online deals to the users. Thanks to its vigilant deal hunters.
How long will this discounting continue? One cannot put finger on a number, however till we don’t have TFS kind of consolidations, companies will continue to undercut the competition with VC money. BTW, if you are thinking VCs are losing money, you are wrong. They are betting on the growth story and the moment they smell consolidation they exit at a higher valuation. So, it’s a win, win, win situation for consumer, investors and ecommerce companies.