Flipkart’s battle in opposition to Amazon has caused the firm losses of more than Rs 3,200 Crore for this financial year. This is 70% more as compared to last year, as per regulatory filings of the 2 main bodies that mange the business in India—Flipkart Internet and Flipkart India.
The wholesale subsidiary of the online retailer, Flipkart India, witnessed losses increasing by almost 750% to more than Rs 2,000 Crore, while Flipkart Internet (the body that manages the online service) clocked losses of almost Rs 1,100 Crore. This is a drop of just below 30% in comparison to the last year. The losses by Flipkart India for last fiscal had come down to almost Rs 244 Crore, in comparison to Rs 545 Crore a year before. This increasing loss in the newest year is an indication of the aggressive discounting and marketing Flipkart has had to do to offer due to American competitor.
On a related note, earlier it was found that Flipkart trades over 50% of the handsets online, taking a larger lead over Amazon in the vital segment. Flipkart increased its share in the market of online handsets shipments in 2017 to 51%, from 44% the year ago, while market share of Amazon elevated slightly in 2017 to 33% from 31%, as per a report by a research firm. Smartphone volumes of Flipkart increase in 2017 by 43%, in comparison with Amazon’s increment of 33%, claimed the media report.
In general online handset shipments increased 23% yearly, quicker than the general handset market last year, with Amazon and Flipkart grabbing a joint 87% of the total value and 84% of the total volume. Chinese company Xiaomi’s mi.com is also forcefully pushing sales via its own website, now adding up to 10% to in general online handset shipments.