Flipkart’s valuation markdown
economictimes.indiatimes.com
Flipkart’s valuation markdown
1–10 of 40 posts
Re: Flipkart’s valuation markdown
#2Flipkart is still a market leader by a considerable margin. Its main stay has been electronics and fashion retailing. It is excelling at both, and shows no signs of slowing down. It has managed to attract top-tier engineering talent in the Country (India), by offering generous wages and generally because it has some very tough problems to solve.
Amazon has been making in-roads, capturing a size-able market share, but dare I say they're imitating Flipkart to an extent, and that's a testament to innovativeness with which Flipkart has worked all along.
Despite the picture the article is trying to portray, Flipkart is well and truly an established business at this point. Sure they're making losses, but retailing is a tough-nut. In order to capture a rapidly growing internet-base, Flipkart and others need to take those hits-- they need to trade growth with profit, unless their end-game is to get acquired.
It is pretty natural trajectory an e-commerce company to take, IMO. These firms doing a re-valuation of their investments does look scary, and probably they did so having looked at the financials and the potential-- but the correction in the valuation is just a blip. Retailing is hard-- customers want discounts, VCs want growth, Markets want profit... you have to choose two and ignore the rest, I guess.
Re: Flipkart’s valuation markdown
#3Flipkart's valuation increased more then 1000x, then went down 27%. There's nothing catastrophic about that.
Are journalists really this myopic or just eager for clicks?
Re: Flipkart’s valuation markdown
#4Flipkart is still a market leader by a considerable margin. Its main stay has been electronics and fashion retailing. It is excelling at both, and shows no signs of slowing down. It has managed to attract top-tier engineering talent in the Country (India), by offering generous wages and generally because it has some very tough problems to solve. Amazon has been making in-roads, capturing a size-able market share, but…
Can you elaborate on your comment that Amazon is imitating Flipkart to an extent? Are there specific examples where Amazon is doing this? Is it possible to learn from the Indian market and bring those ideas to a more global audience?
Re: Flipkart’s valuation markdown
#5Flipkart is still a market leader by a considerable margin. Its main stay has been electronics and fashion retailing. It is excelling at both, and shows no signs of slowing down. It has managed to attract top-tier engineering talent in the Country (India), by offering generous wages and generally because it has some very tough problems to solve. Amazon has been making in-roads, capturing a size-able market share, but…
Can you elaborate on your comment that Amazon is imitating Flipkart to an extent? Are there specific examples where Amazon is doing this? Is it possible to learn from the Indian market and bring those ideas to a more global audience?
Was Cash on Delivery introduced by Flipkart before Amazon in India? If so, I think amazon is 'imitating' flipkart in this area. I see COD on UPS, Fedex in USA but not as popular as COD in India.
Re: Flipkart’s valuation markdown
#6Flipkart is still a market leader by a considerable margin. Its main stay has been electronics and fashion retailing. It is excelling at both, and shows no signs of slowing down. It has managed to attract top-tier engineering talent in the Country (India), by offering generous wages and generally because it has some very tough problems to solve. Amazon has been making in-roads, capturing a size-able market share, but…
Can you elaborate on your comment that Amazon is imitating Flipkart to an extent? Are there specific examples where Amazon is doing this? Is it possible to learn from the Indian market and bring those ideas to a more global audience?
Popular myth is COD (Cash on Delivery) model was pioneered by Flipkart which other e-tailers (Amazon including) adopted.
The myth is not without it's merit, Flipkart is perhaps the first one which did it at massive scale and showed how it can reduce the friction when converting a website visitor to a paying customer.
Further read on COD http://www.businesstoday.in/magazine/cover-story/cash-on-del...
Re: Flipkart’s valuation markdown
#7Earlier quoted context omitted.
Can you elaborate on your comment that Amazon is imitating Flipkart to an extent? Are there specific examples where Amazon is doing this? Is it possible to learn from the Indian market and bring those ideas to a more global audience?
Popular myth is COD (Cash on Delivery) model was pioneered by Flipkart which other e-tailers (Amazon including) adopted. The myth is not without it's merit, Flipkart is perhaps the first one which did it at massive scale and showed how it can reduce the friction when converting a website visitor to a paying customer. Further read on COD http://www.businesstoday.in/magazine/cover-story/cash-on-del...
I don't think this is a new concept by any means. It is primarily due to the fact that a large majority of consumers in India might not have the means or the comfort level to put in a credit card. The concept has been around for a long long time. [1]
Re: Flipkart’s valuation markdown
#8I think these are extremely useful corrections. Investors are really worried about an implosion and are basically scrambling to defuse the ticking bomb.
If they'll show enough maturity and they'll be willing to let greed subside for a couple of years, maybe we'll end up having a better, more realistic, high-tech scene pretty soon without any bubble having to burst.
Or it won't be enough and they're all screwed nonetheless. Who knows!
Re: Flipkart’s valuation markdown
#9Earlier quoted context omitted.
Can you elaborate on your comment that Amazon is imitating Flipkart to an extent? Are there specific examples where Amazon is doing this? Is it possible to learn from the Indian market and bring those ideas to a more global audience?
Was Cash on Delivery introduced by Flipkart before Amazon in India? If so, I think amazon is 'imitating' flipkart in this area. I see COD on UPS, Fedex in USA but not as popular as COD in India.
Yes, long before Amazon started operating in India.
Re: Flipkart’s valuation markdown
#10Flipkart's valuation increased more then 1000x, then went down 27%. There's nothing catastrophic about that. Are journalists really this myopic or just eager for clicks?
They might be even myopic, but you have to take into consideration the very strong narrative of perpetual explosive (unsustainable) growth thrown around by investors and company themselves. From a journalist standpoint every sensible correction to the mainstream narrative is always quite news worthy.