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Online retailer Flipkart sees a big opportunity in selling automobiles and accessories online as it scouts for categories to both boost revenue and deliver profits. The Bengaluru-based company plans to aggressively push sales of motorcycles, scooters and cars on its platform besides selling spare parts and services, according to a top official.
The move will pit India's largest online retailer against portals like CarDekho and CarTrade as well as sharpen competition with primary rivals — Amazon and Snapdeal . "We believe that Flipkart can solve teething issues such as long delivery times and offer price transparency," said Adarsh Menon, vice-president for electronics and automobiles at Flipkart.
According to industry estimates, the total automobiles industry is worth about $50 billion, with sales till now only coming through offline channels like auto dealers. But auto portals like CarDekho and CarTrade have started generating leads for dealers online, even as companies like Flipkart take it a step further by closing the loop.
Flipkart has started working with car and bike manufacturers like Mahindra & Mahindra, Kawasaki and TVS Motors. In the case of Mahindra KUV100 K8, bookings began in January and the model has sold a combined 21,000 units both online and offline as of early March.
Experts tracking the industry said that online sellers can charge as much as 2% commission of auto price, without taking on the hassles of delivery linked to products like televisions and furniture.
Flipkart's push in the category comes after local rival Snapdeal has already made inroads into the space by launching a dedicated platform called Snapdeal Motors in November. The Delhi-based e-tailer said then that its automobile sales have seen a 20-fold jump, and that it expects to reach $2 billion in sales from the category in two years.
Amazon India also launched an auto and accessories category last month, with over 22,000 products listed.
Flipkart plans to hit double digit shares in auto accessories and auto electronics category, as it has already seen a 600% growth in gross merchandise value in these segments. The company also said it plans to capture 2% of India's premium two wheeler segment.
"While last year, we only had accessories and electronics, this year we are becoming a more end-to end auto player with more choices," said Menon.
http://m.timesofindia.com/tech/tech...ell-cars-motorcycles/articleshow/51354257.cms
The move will pit India's largest online retailer against portals like CarDekho and CarTrade as well as sharpen competition with primary rivals — Amazon and Snapdeal . "We believe that Flipkart can solve teething issues such as long delivery times and offer price transparency," said Adarsh Menon, vice-president for electronics and automobiles at Flipkart.
According to industry estimates, the total automobiles industry is worth about $50 billion, with sales till now only coming through offline channels like auto dealers. But auto portals like CarDekho and CarTrade have started generating leads for dealers online, even as companies like Flipkart take it a step further by closing the loop.
Flipkart has started working with car and bike manufacturers like Mahindra & Mahindra, Kawasaki and TVS Motors. In the case of Mahindra KUV100 K8, bookings began in January and the model has sold a combined 21,000 units both online and offline as of early March.
Experts tracking the industry said that online sellers can charge as much as 2% commission of auto price, without taking on the hassles of delivery linked to products like televisions and furniture.
Flipkart's push in the category comes after local rival Snapdeal has already made inroads into the space by launching a dedicated platform called Snapdeal Motors in November. The Delhi-based e-tailer said then that its automobile sales have seen a 20-fold jump, and that it expects to reach $2 billion in sales from the category in two years.
Amazon India also launched an auto and accessories category last month, with over 22,000 products listed.
Flipkart plans to hit double digit shares in auto accessories and auto electronics category, as it has already seen a 600% growth in gross merchandise value in these segments. The company also said it plans to capture 2% of India's premium two wheeler segment.
"While last year, we only had accessories and electronics, this year we are becoming a more end-to end auto player with more choices," said Menon.
http://m.timesofindia.com/tech/tech...ell-cars-motorcycles/articleshow/51354257.cms
