Indian
e-commerce firm Flipkart will shut down its website within a year
whereas its fashion retail website Myntra will become app-only entity
from May 1. According a senior executive quoted in The Times of India,
Flipkart will move to an app-only format within a year.
Michael
Adnani, vice president (retail and head of brand alliances) at Flipkart
said that although last year despite getting more app users, Flipkart
continued to be on the web platform, next year it would be mobile only.
“A year ago, 6% of our traffic was coming from mobile. In less than 18
months, that traffic is 10-fold. That shows the significance of what a
mobile phone is doing for the consumers and consequently doing for us,”
he told the newspaper.
Flipkart
becoming an app-only platform has been speculated before as well.
Earlier in a report in Mint, sources in Flipkart had hinted that the
website would be shutting down. According to the Flipkart spokesperson,
the app has gained relevance because it allows the users to stay logged
in all the time and also the shopping is quicker with faster checkouts
as compared to the website.
This
move isn’t surprising considering the response the apps are getting
from consumers. Just to give an example, Myntra, the online fashion
retailer which was acquired by Flipkart, has around 90% traffic and 70%
of orders coming from its mobile app.
According
to Prasad Kompalli, head of Myntra’s ecommerce platform, while seamless
shopping experience is one aspect of a mobile e-commerce app, the other
advantage include saving on costs. Maintaining a website, advertising
and reaching out to consumers on the web platform is a tedious process
whereas on an app-platform, things are relatively more focussed.
Collecting relevant user data and targetted marketing is easier on the
app than on the website according to people familiar with the matter.
Flipkart
has around 40 million registered users and around 30,000 merchants
selling over 20 million products online. According to the TOI report,
Boston Consulting Group expects more than 580 million people in India to
be online by 2018 out of which 70-80% will be accessing the web through
their phones only. That’s a huge market to tap for mobile apps, since a
majority of this population will not be able to afford a desktop to log
on to the Flipkart website to shop.
According
to Adnani, Myntra’s growth on the app has been higher than Flipkart
which has lead the company to decide to shut down the web operations by
May 1 and all transactions going forward will happen only on the Myntra
app.
Recently,
Flipkart was caught in the middle of a storm after news reports emerged
that it was going to be part of the Airtel Zero marketing platform –
which lets app developers pay for consumers’ data usage charges,
provided they are using the said developer’s app. Flipkart which was
initially supposed to be a partner in the Airtel Zero program, later
withdrew support following backlash from netizens, who went to the Play
Store and downvoted the Flipkart app to 1 star rating. Many thousands of
users even uninstalled the Flipkart app. While the net neutrality
debate is still on, Airtel has refused to back down from its Airtel Zero
platform.
Posted by : Gizmeon
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