Why Flipkart’s Big App Shopping Days and other app only sales make sense

Today is the last day of Flipkart’s Big App Shopping days. The country with its 180 million online user-base has increasingly seen many such app only online sales.

In a country where a mere 7-8% of the population use smartphones and a smaller number have 3G, and the inclination to use an app, what is the rationality behind such sales?

“The logic is that these app-only sales prompt more people to use the app and hence increase the stickiness of the brand and ensure customer loyalty”, Abheek Singhi, Head, Consumer and Retail Practice, Boston Consultancy Group India says.

Going by the numbers of tablet and smartphone users, aren’t Indian companies betting big on their apps?

“It’s a simple matter of investing ahead of the curve. The people who transact and buy in heavy volumes are the ones using multiple devices. These smartphone users belong to the most attractive segment of the market today”, Singhi says.

There have also been concerns that the Indian e-commerce sector is a bubble in the making with whopping amounts invested without any distant chances of real profitability.

“Most consumer categories in India lag behind China by about 8 to 10 years. Taking that as the benchmark, there could be a huge opportunity in the Indian ecommerce market”, Singhi observes.

Experts believe that while the Indian e-commerce market was pegged at $4 billion last year, the figure might increase to $40-50 billion by 2020. So there will still be some catching up to do with the Chinese.

Comments from Flipkart are awaited.

(Image: Indiatimes)