FLIPKART V/S MYNTRA : WHO UNDERSTOOD CUSTOMERS BETTER?

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 Understanding customer demand and customer behavior is very important to survive in this business world. Flipkart and Myntra have understood them and made a huge revolution in their sales over a decade. Let us discuss how they started their journey and gradually became top ecommerce sites.

ORIGIN OF FLIPKART :

  • Sachin Bansal and Binny Bansal are the founders of Flipkart. They were employed in Amazon ecommerce company. But Sachin Bansal had plans of starting their own ecommerce company. So they resigned the job in order to setup Flipkart where they used to sell books during 2007.


CHALLENGES FACED BY FLIPKART:
  • During 2007, there was a numerous e-commerce sites. But the main challenge was to gain customer trust. Because at that time many people in India did not believe in ordering products in online shopping was the best option. Most of them were purchasing from offline stores, because they could feel the quality by touching it. But it can't be done in online shopping. 
  • Another drawback Sachin Bansal could find was people were not ready to pay in online mode. Back then during 2007 there was only two payment options i.e., payment through credit card or debit card.


  • He came up with a solution by adding a new option in payment methods called Cash On Delivery(COD), where a customer can choose COD as a payment option and pay money after receiving the order. 
  • This new payment was setup first time in India. By introducing this Flipkart gained customers trust and it was observed that customers increased and in 2008 they made a revenue of 40 million.
During 2009, many companies started funding for Flipkart. Right now Flipkart revenue is estimated to be around 40 Billion US Dollars.
  • In 2014, Flipkart acquired Myntra. But there is an interesting fact why Flipkart chose to acquire Myntra but not merge with it ?


  • Before questioning about that let us understand how Myntra succeeded in this competitive ecommerce world.
ABOUT MYNTRA :
  • Mukesh Bansal, Ashutosh Lawania and Vineet Saxena started Myntra in 2010. They had an online platform where they started setting up merchandise store where there would sell customized products through companies.
  • But they were earning profit only when any festival season or any other special events would come. Because that was the only time where people would make a order. And rest of the time there was no sales.
  • Due to this, Myntra converted it's customized merchandise stores to retail stores and started selling clothes for men and women from different brands.


UNDERSTANDING CUSTOMER NEEDS :
  • During the time when they started retail store, Mukesh Bansal observed that Flipkart  made a huge sales growth and there was a lot more competitors. But still he noticed that only less people would purchase from online.
  • The reason behind it was customers were not sure that genuine products would be delivered with expected quality. And hence Myntra introduced a new option called "Easy Returns" . 
  • This helps customers who purchased specific product could try them and if they are not happy with the product, they can return them and get full refund of the payment they made. This made sales to increase drastically.
  • During 2014, Myntra sold 1.5 lakh products from 1000+ brands.
Myntra has variety of clothes for both men and women with great offers and discounts.
  • Flipkart eventually acquired Myntra to get inventory management and Niche Audience from it.
  • But they did not merge with Myntra because they thought that Myntra customers would get confused when brand identity was changed.

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