Recently one of my friends (chocophilix) pointed out on twitter that the
prices on Flipkart had risen. I went ahead and checked the prices of books that I have bought or want to buy and this is what I found:
Fig: Flipkart vs Infibeam
In general I could see a 5 to 15 percent price difference of
Flipkart from Infibeam. However, this price difference has been observed only
in the book selling business (the first segment in which Flipkart entered). The
consumer electronics business still shows a congruity in prices among the
online stores.
From the time it has started marketing through television
advertisements, Flipkart has become a household name. Their service is
unanimously considered the best among all the online stores currently
functional in India. However this price rise came as a surprise as Flipkart had
just started attracting eyeballs of the non-geek India.
It would be interesting to see whether the cost conscious Indian
customer be ready to pay the extra 10% for a better service. The case in
discussion becomes more relevant because of the unique cash on delivery model
which the Indian online retail industry has been promoting. The cash on
delivery model negates the perceived risk from online shopping and obviates the
need for better service.
Is it too soon for Flipkart to end the price war? Time will
tell whether this is a cyclic change or a clear differentiation sought by Flipkart.
Looking forward to your comments.