Flipkart gets an edge over Amazon in the fast growing non-metro markets: Report
While Flipkart and Amazon were the joint leaders in terms leadership in the e-tailing space, Flipkart had an edge in the non-metro markets in India.
Key highlights:
- Amazon and Flipkart have emerged as the joint leaders in the e-tailing leadership index in Q2 2017
- Amazon has outperformed Flipkart on the web and app experience for the first time
- Flipkart has been leading in the non-metros
Amazon and Flipkart have emerged as the joint leaders in the e-tailing leadership index (ELI) in the Q2 2017. This is the second consecutive quarter when they have tied on the top spot, said a RedSeer Consulting report.
In last 2 quarters there has been a slow but consistent shift in the customer base. The share of transactions coming from non-metros has been consistently increasing. As per RedSeer now the non-metros have considerably higher transactions compared to the metros.
Source: RedSeer Consulting
Amazon through its prime offering has been able to capture the leadership in the metros, while Flipkart has been leading in the non-metros. Reliance Jio seems to have played a considerable role in the increase in number of transactions from the smaller cities.
On the trusted brand metrics Flipkart still has a one-point lead over Amazon, this lead is much higher is smaller cities when compared to metros. However, in terms of great experience Amazon has a one-point lead over Flipkart.
Amazon has outperformed Flipkart on the web and app experience for the first time. It’s a measure of how customers rate their experience of using the app or web for shopping. This in conjunction with the impact of “Prime” has led to Amazon’s better score, said the report.
Source: RedSeer Consulting
Amazon’s rise from the last few quarters is attributed to a better top of the mind recall. Which it said is a direct outcome of the heavy marketing effort put by Amazon, an area where Flipkart has been significantly conservative.
However, in terms of a crucial area of post delivery experience, Flipkart still maintains its lead. This is one of the most important points for the first time buyers.
Another key parameter has been the, Best Value, an indicator of value for money and meaningful assortment. On overall basis this parameter also ties for both the players, but Flipkart has a slight lead on the price competitiveness.
Amazon and Flipkart was followed e-commerce company Snapdeal, which had recently rejected the acquisition deal by Flipkart. Snapdeal had seen a decline in ELI from the last quarter from 80 in Q1 2017 to 78 in Q2 2017.
Source: RedSeer Consulting
The trust in the Snapdeal brand was the lowest at 11, followed by best value and the highest being a great experience.
It was closely followed by Paytm which has seen a growth in its ELI during this quarter to 79 from 77 in Q1 2017.
E-commerce company Shopclues came in next, followed lastly by Ebay.
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