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Flipkart eyeing 70% market share to maintain lead over Amazon

Firm aims to push smartphone sales during festive season; Big Billion Days crucial for achieving target

Alnoor Peermohamed  |  Bengaluru 

flipkart, amazon

India's largest marketplace is looking to extend its lead over rival during this festive season by targeting a 70 per cent market share in the domestic online shopping space.
 
With a $4-billion war chest, is open to burning cash to buy a significant portion of the existing market share and continue its lead over The mainstay of Flipkart's strategy is to push the sale of smartphones- a category that has not been providing monetary benefits to the firms so far.

"We had set an ambitious market share target of 70 per cent and we should get to around 65 per cent with alone and 70 per cent along with and Jabong," said Smrithi Ravichandran, senior director at "The Big Billion Day offer constitutes a major portion of the monthly target and based on the numbers collected over a period of one-and-a-half days, we are on track to achieve our targeted goals."

Prior to the start of the festive sales, had claimed that it has already overtaken on every metric possible. Both have been participating in a war of words, asserting their dominance over the other.

claims most of the heavy lifting will be done by the smartphone category in which it aims to capture around 75 per cent of the market share, among online sellers. The category will drive 50 per cent of its overall during the next one month, while supporting accessories and electronics are expected drive another 10 per cent of its overall

The company had earlier claimed that one out of two would be sold on its platform during the upcoming festive month. Typically, around 67-70 per cent of is sold offline, while the remainder is sold online. Analyst Counterpoint notes that controls around 50 per cent of the online smartphone market and 15 per cent of the overall market.

Fashion and large appliances will be the other big contributor for Flipkart, with 15 per cent of its being driven by these two categories. While fashion is a smaller segment than in terms of GMV, the category is expected to drive the maximum number of stock keeping units (SKUs) for at 55 per cent.

While Flipkart's aim is to beat Amazon, a third competitor has emerged in the form of The Softbank-backed firm has been offering huge cashback on electronics and and said it saw sales of popular models such as Apple's iPhone and Samsung's Galaxy J3 Pro jump by twelve times over a regular day.

"This is our first festive season sale, and we're happy to share that we have successfully managed to offer the lowest prices on and laptops in the market. We are enabling millions of customers from semi-urban India to buy electronics at unbeatable prices, and most of these orders are being serviced in less than 24 hours owing to our innovative same-city delivery model," said Amit Sinha, Chief Operating Officer at Mall, in a statement.

First Published: Fri, September 22 2017. 01:08 IST
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