Tier II towns have shown amazing trends: Flipkart's Sachin, Binny Bansal on e-commerce in India

Sachin and Binny Bansal speak about where e-commerce is headed in India.

Shruti Dhapola February 05, 2014 16:53:17 IST
Tier II towns have shown amazing trends: Flipkart's Sachin, Binny Bansal on e-commerce in India

Flipkart along with Motorola Mobility today announced the exclusive launch of the new Moto G smartphone in India and we spoke with Flipkart founders, Sachin and Binny Bansal on what this deal means for Flipkart and where e-commerce is headed in India.

What does this deal mean for Flipkart? Is the Google-Lenovo deal on Motorola likely to affect the sales of the Moto G.

Sachin Bansal: It's the biggest the thing to have happened anywhere. The fact that a brand like Motorola only saw Flipkart as an option for launching in India shows where we stand.

As far as the Lenovo deal goes, I don't see it affecting the sales, not really. As far as the brand Motorola is concerned, it is here to stay. We are the e-commerce platform that they have chosen to go with, so it shouldn't really matter what happens at the backend where the Moto G sales are concerned as long as consumers are getting the product.

Binny Bansal: Moto G is an exceptional product. The price at which it is being launched, it is definitely a quality product from a big brand. We are very, very excited about the volume of sales that we are expecting from the Moto G. I don't think something like the Lenovo deal will have too much of an impact on the sales.

The exclusive deal is definitely a game-changing moment for e-commerce, given that Flipkart is bringing a world-class product to India. We're very excited about this launch.

How has the response been to Flipkart in tier II and III towns?

Sachin Bansal: The response has been pretty good. We have gone some targeted marketing in these towns. The number of consumers is actually much less in each city than what you will find in say a metropolitan city. But since the number of cities in tier II and III is so much that it makes sense for us to expand in these towns.

Which categories have seen the biggest growth in tier II towns for Flipkart?

Sachin Bansal: Mobile and tablets continue to be the doing very well and the growth rate has been very, very good. Books is also growing for us. Fashion category is really the fastest growing category for us. Clothes, shoes, accessories are the biggest in terms of growth in the tier II towns. We are, of course, planning to get some bigger brands as well and trying to get them to come online.

Binny Bansal: Tier II and III towns have shown some amazing trends. If you look at laptops, clothing and footwear categories, they've got a very strong response. These are categories that are really picking up in these towns. As far as women's clothing is concerned, it's doing really well. We're seeing quarter on quarter growth in double digits, where the category is concerned. It will be probably be one of the biggest businesses in the next 3 or 4 years. It's growing faster in two-tier towns.

What has been the response to PayZippy in India?

Sachina Bansal: It's still to early to say how PayZippy will play out.

Binny Bansal: It's very early days and It's still in a startup mode. We're still doing a lot of experiments with it. But the response has definitely surprised us, we weren't expecting the kind of response we've got. You'll see a lot more innovations on the payment modes from us in the coming days.

Where is Flipkart on the ebooks market, especially now that Amazon is also in India with Kindle and ebooks?

Binny Bansal: In the ebooks space it is still very early days in India, it is a very nascent market. Amazon of course captured the US ebooks market very well. In India, we are bullish about the market and see that as the future. For now, we think working on both ebooks and physical books strategy is the right way to go.

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