MxMIndia

Category: NEWS

  • BITM has already started the work on new Summer Campaign slated to be released soon

    Jabong goes for Bang in the Middle

    By A Correspondent

     

    Online fashion store Jabong has awarded its creative mandate to Bang in the Middle.

     

    With very ambitious growth plans and a desire to redefine the way India buys fashion, Bang in the Middle (BITM) would create a series of campaigns across offline and online medium to accelerate Brand Jabong’s journey to market leadership. BITM has already started the work on new Summer Campaign slated to be released soon.

     

    Prathap Suthan

    Commenting on the win, Prathap Suthan, Managing Partner and CCO, Bang in the Middle said “Jabong is truly a leader brand in the online fashion space, and we are delighted that they found merit in what we shared. More than anything else, there’s a warm, honest and wonderful chemistry in our relationship. I know Jabong is driven by people who know the e-com space inside out, and are open to latitude. I do know our experience will work quite efficiently, and I look forward to a stretch of brilliant and good looking days at work.”

     

    Arun Chandra Mohan, Founder & CEO, Jabong.com said, “We had a clear mandate for the creative pitch and BITM presented a differentiated strategy and a modern approach towards communication that stood out and matched our business focus. We will focus heavily on marketing in the coming years for the overall brand and we look forward to their participation in establishing Jabong as a leader in the industry and the most preferred online shopping fashion destination in India.”

     

    Bang in the Middle currently handles Zee News, Zee Business, Dulux Paints, Veen Waters, Alpha One Amritsar, Diva’ni, Vimal, Tupperware, Bhima Jewelers, Meridian Hotel Kochi among other brands, and has offices in Gurgaon, Kochi, Trivandrum, Kolkata, Chicago and New York

     

  • She was earlier the CEO of Firstpost.com, the leading news and opinion portal from the group

    Durga Raghunath elevated at Network18 Digital

    By a correspondent

     

    Network18 Digital, the digital content arm of Network18 has strengthened its leadership structure by elevating Durga Raghunath to CEO. She was earlier the CEO of Firstpost.com, the leading news and opinion portal from the group. Lakshmi Narasimhan, the previous CEO for the group’s digital content business, is now moving onto a corporate role.

     

    Ajay Chacko

    Commenting on the development, Ajay Chacko, COO, Network18 said, “At Network18 Digital, we are proud to have built cult digital content brands which have had a defining influence on the space. As consumer internet in India undergoes a paradigm shift, we continue to be focused on leading this change from the front. Durga is well-equipped to lead this effort for us due to her strong understanding of the digital user, products and the opportunity.”

     

     

    Lakshmi Narasimhan added, “Durga has played a stellar role in transforming Firstpost from an innovative idea into a leader brand today. We are confident that in this expanded mandate, she will take Network18 Digital to newer heights.”

     

    Raghunath has over ten years experience in publishing – both books and digital. She previously worked with the Wall Street Journal, Mint and HarperCollins in New York.

     

  • The deal will see Sony Music manage all digital assets for Zee Music's upcoming Bollywood releases

    Sony to manage digital assets of Zee Music

    By a correspondent

     

    Sony Music Entertainment India and Zee Music Company have announced a strategic worldwide digital deal wherein Sony Music will manage all digital assets for Zee Music’s upcoming Bollywood releases. The tieup further extends to exploring publishing for Zee Music’s assets for the rest of the world through Sony/ATV. Apart from the Zee Music releases, Sony Music will also be working on also other tent pole films with leading production houses including Vishesh Films, Dharma Production and Fox Star Studios. This deal will cumulatively grow Sony Music’s digital market share by approx 15 per cent.

     

    Zee Entertainment Enterprises Limited had recently announced its foray into the music label space with its venture, Zee Music Company and acquired the music rights of over 20 major motion pictures. With this announcement Sony Music will have access to all of Zee Music’s releases including Holiday, Bang Bang, Bombay Velvet, Humshakal, Hawa Hawaii to name few.

     

    Sanujeet Bhujabal, Marketing Director Sony Music India said, “In the past we have worked with leading content creators like YRF and Disney. This strategic association will provide a global foot print to all the prestigious releases. This is a huge opportunity and together we believe we will be able to provide the best of music entertainment to fans.”

     

    Anurag Bedi, Head Zee Music Company said, “We’ve had a great relationship with Sony Music in the past, and are excited to have them as the digital partner for some of our forthcoming films. Partnering with Sony Music will be mutually beneficial as we have a robust slate for this year which includes about 20-25 films, all of which are produced by leading production houses.”

     

  • The agency's mandate would be to enhance its brand value in the marketplace

    Thoughtblurb appointed AoR for Sheth Developers

    By a correspondent

     

    Mumbai-based Sheth Developers has appointed thoughtblurb, a fully integrated creative and strategic agency to enhance its brand value in the marketplace.

     

    Ashwin Sheth, Managing Director, Sheth Developers said, “We are pleased to announce our collaboration with thoughtblurb as our creative agency partner. Their futuristic and creative ideologies are in sync with our brand philosophy and positioning. With thoughtblurb on board, we believe that our customers will truly experience a creatively enhanced shopping environment with each visit.”

     

    thoughtblurb has been assigned the task to enhance the overall Viviana brand experience using progressive creative intelligence. Commenting on this development, Vinod Kunj, Managing Partner at thoughtblurb said, “When I first interacted with the management team, I was charmed with their optimistic curiosity to learn and understand how they can build value-creating customer experiences. The way I see it, this is not just a mall brand that we’re trying to help; but it’s an opportunity to showcase how a shopping destination can disrupt the marketplace paradigm and change the way customers experience shopping and entertainment under one big roof. In the coming weeks, we will work very closely with the Viviana team to ensure that it becomes a destination you can’t miss to visit.”

     

  • Leo Burnett announces departure of KV Sridhar, Chief Creative Officer

    Pops plans to reinvent himself after May 4

    K V Sridhar

    By A Correspondent

     

    Leading creative advertising network Leo Burnett India has announced the departure of KV Sridhar, Chief Creative Officer for India and the subcontinent. Pops, as Sridhar is better known to the fraternity, will be with the agency till May 4. He has been with Leo Burnett for 17 of over three decades in advertising. Pops plans to reinvent himself and pursue other interests. Meanwhile, Leo Burnett has informed that a new creative leadership will be announced shortly. This is the agency’s second senior change in the agency in the last year with Arvind Sharma making way for Saurabh Varma as agency head in October 2013.

     

    Starting out as a Bollywood billboard painter, he helped the agency gain recognition at international awards shows including the Cannes Lions, New York Festival, and local Indian awards. Under his creative leadership, Leo Burnett India went on to win agency of the year in the Leo Burnett global network, twice. He also led the agency to be ranked by Creativity magazine to be among the top 20 creative agencies in the world. Pops has also represented the agency on many Indian and international award juries.

     

    “Pops has always been a young man at heart and once again his nomadic spirit has led him to look at things afresh and follow his heart to pursue new adventures.The agency and I will continue to build on the creative trajectory he has set,” said Varma who is Chief Executive Officer, Leo Burnett Group India.

     

    Said Pops, “It has been a purposeful journey for me at Leo Burnett, growing with and having a chance to play a key role in shaping the agency’s creative prowess. I have had the opportunity to work with and get to be friends with some of the brightest creative minds in the world, worked on some of the most exciting campaigns with some of the most amazing clients. For now, I would like to take a break to reinvent, rediscover and rededicate myself. I wish Saurabh and Leo Burnett great success.”

     

  • To premier on April 28, Har Mushkil Ka Hal – Akbar Birbal will be backed up by a multimedia marketing plan

    Big Magic announces Akbar-Birbal historical comedy

    By A Correspondent

     

    Big Magic, the Reliance Broadcast Network Ltd Hindi entertainment channel, has announced the launch of an Akbar-Birbal banter-based daily shop starting April 28.

     

    Featuring Kiku Sharda as Akbar, Delnaz Irani as Jodha, Vishal Kotial as Birbal and Kishwar Merchant as the courtesan in love with Birbal, the show will air at 9pm each weeknight.

     

    According to a statement issued by BIG Magic, the adaptation will ensure unmatched and unseen comedy entertainment. “The format and offering of the show is in keeping with our channel positioning of India’s first light entertainment channel and we are proud to be offering audiences India’s first historical comedy.”

     

  • A PwC survey of entertainment and media CEOs across 33 countires throws up some interesting findings

    Shifts in consumer spending and speed of tech change a threat to M&E

     

    Internationally reputed consulting major PricewaterhouseCoopers (PwC) has revealed the findings of its 17th Annual Global CEO Survey where it surveyed 72 Media & Entertainment CEOS in 33 countries, and conducted in-depth interviews with three media CEOs: Michael Roth, Interpublic Group, Donatella Treu, II Sole 24 Ore SpA and Nigel Morrison, Skycity. While the main report can be downloaded from www.pwc.com/ceosurvey, here are the salient features:

     

    There is growing optimism amongst M&E CEOs as they transform their businesses and collaborate in order to capitalise on opportunities presented by technological advances and demographic shifts. However, the same business threats remain: shifts in consumer spending and behaviour and speed of technological change.

     

    In ‘Fit for the future: Capitalising on global trends’, we also explore three forces that business leaders think will transform their business in the next five years: technological advances, demographic changes and global economic shifts. We show how these trends, and more importantly the interplay between them, are creating many new – but challenging – opportunities for growth through: creating value in totally new ways; developing tomorrow’s workforce; and serving the new consumers.

     

    We also show how, in responding to these trends, CEOs have the opportunity to help solve important social problems.

     

    In short, the demands being placed on business leaders to adapt to the changing environment are increasing exponentially; CEOs are having to become hybrid leaders who can successfully run the business of today while creating the business of tomorrow.

     

    This sector key findings report takes a closer look at responses from M&E CEOs. It is based on 72 interviews, conducted in 33 countries around the world. We also cite in-depth conversations with two sector CEOs.

     

    Sector snapshot

    Product and service innovation will provide the greatest opportunity for revenue growth and is likely to play a pivotal role in addressing their greatest concerns in M&E: shifts in consumer spending and behaviour and speed of technological change. However, risk management is the area of the business least prepared moving forward.

     

    Growing optimism, but the same business threats remain

    There is growing optimism amongst M&E CEOs; 93% (compared to 80% in 2013) are somewhat or very confident in their company prospects for revenue growth in the next three years. They are also more optimistic about the global economy despite some concerns. 39% of M&E CEOs believe that the global economy will  improve in the next 12 months, compared to 20% last year. However, there are concerns about Government response to fiscal deficit and debt burden and growth in developed economies.

     

    The same business threats remain this year. The top three business threats M&E CEOs are extremely concerned about are: shifts in consumer spending and behaviour; speed of technological change; and new market entrants.

     

    Innovation will drive growth, but is more Government support needed?

    Over half of M&E CEOs surveyed (56%) see product/service innovation as the main opportunity to grow their business in the next 12 months, more than any other industry surveyed. As such, a majority of M&E CEOs are focusing on developing an ‘innovation ecosystem’ which supports growth. However, 58% also think that the Government in their country has been ineffective/greatly ineffective in developing such as ecosystem.

     

    Growing optimism in company growth prospects…

    There is growing optimism amongst M&E CEOs in their company prospects for revenue growth in both the short and medium term:

     

    • 83% of M&E CEOs surveyed (compared to 70% in 2013) are somewhat or very confident in their company prospects for revenue growth in the next 12 months

     

    • 93% of M&E CEOs surveyed (compared to 80% in 2013) are somewhat or very confident in their company prospects for revenue growth in the next 3 years

     

    Entertainment and media CEOs are also more optimistic about the global economy despite some concerns

    39% of M&E CEOs believe that the global economy will improve in the next 12 months, compared to 20% last year. However, M&E CEOs also have some concerns: 74% are concerned about Government response to fiscal deficit and debt burden and three quarters are concerned about the continued slow or negative growth in developed economies.

     

    The same business threats remain

     

    Shifts in consumer spending and behaviours, and the speed of technological change continue to keep CEOs awake at night and are their greatest concerns:

     

    • 71% of M&E CEOs are somewhat or extremely concerned about shifts in consumer spending and behaviours, more than any other industry surveyed (and compared to a global total response of 52%)

     

    • 65% of M&E CEOs are somewhat or extremely concerned about the speed of technological change (compared to a total global response of 47%)

     

    But what gives entertainment and media CEOs the most sleepless nights?

    Top three business threats M&E CEOs are extremely concerned about

     

    Shifts in consumer spending and behaviours

    M&E CEOs, more than any other industry surveyed, are extremely concerned about shifts in consumer spending and behaviours.

     

    Speed of technological change

    Technology continues to transform the industry and M&E CEOs, more than any other industry surveyed, are extremely concerned about the speed of technological change.

     

    New market entrants

    M&E CEOs, more than any other industry surveyed, are extremely concerned about new market entrants.

     

    What are entertainment and media CEOs saying about shifts in consumer spending and behaviours and the pace of technological change?

     

    What PwC is saying

    New technology and changing consumer spending patterns will continue to dramatically shape the M&E industry at great pace.

     

    For example, in 2014 we forecast that consumer spend on mobile Internet will overtake that from fixed broadband. Clearly this provides great opportunity for those businesses best prepared.

     

    Innovation will drive growth and help address entertainment and media CEOs greatest concerns…

     

    M&E CEOs are optimistic about their growth prospects, but what will drive this growth?

    Growth will be mostly organic:

     

    • Over half of M&E CEOs surveyed (56%) see product/service innovation as the main opportunity to grow their business in the next 12 months, more than any other industry surveyed

     

    • Innovation in product/services will play a vital in role in addressing M&E CEOs greatest concern: shifts in consumer spending and behaviour and the speed of technological change

     

    Innovation will drive growth and help address entertainment and media CEOs greatest concerns [continued]…

     

    Constant innovation is critical to meet the demands of a more ‘connected’ consumer, as such:

     

    • 56% M&E businesses are focusing on developing an ‘innovation ecosystem’ which supports growth as a priority

     

    • 61% have either completed or are carrying out technology investment change programmes or have concrete plans in place to do so

     

    …but is more Government support needed?

    Most M&E CEOs think the Government has been ineffective in developing an innovation ecosystem which supports growth

     

    Ineffective in creating an innovation ecosystem

    More than half M&E CEOs think that Government has been ineffective in developing an innovation ecosystem that supports growth.

     

    Innovation should be a priority

    Compared to the global response, more M&E CEOs think that developing an innovation ecosystem that supports growth should be a top priority for Government.

     

    Regulation has impeded innovation

    Some M&E CEOs believe that as a result of regulation they have not been able to innovate effectively in the last 12 months.

     

    Innovation: what are the rewards?

    For companies willing to invest in the right innovation strategy the potential rewards are significant…

    …the most innovative 20% of media, technology and telecoms companies we interviewed, in a recent survey (Seizing the innovation edge), have collectively benefited from an additional US $45 billion in revenue over the last three years, compared with the least innovative companies. This is the equivalent of more than US $1 billion per company, or a 14% revenue uplift.

     

    For further information on PwC’s Global telecoms, media and technology innovation series visit www.pwc.com/TMTinnovators

     

     

    A more collaborative approach in 2014…

    Nearly two thirds of M&E CEOs surveyed (61% compared to 44% cross-industry response) plan to enter a new strategic alliance or joint venture in the coming 12 months, more than almost any other industry group surveyed.

     

    This is a significant increase on last year; only 43% of M&E CEOs said they planned to enter into a new strategic alliance or joint venture in 2013.

     

    Of those planning a strategic alliance or joint venture, 55% plan to do so in the more mature markets, which are driving digital growth: North America and Western Europe.

     

    …but not top of the growth agenda

    Even though more M&E CEOs are planning on entering into a new strategic alliance or joint venture in the coming 12 months, they are not top of the growth agenda:

     

    • Only 11% of M&E CEOs surveyed believe that strategic alliances and joint ventures will be the main opportunity for growth

     

    Business transformation is underway

     

    M&E CEOs have been busy transforming their businesses in order to capitalise on global trends namely: technological advances and demographic shifts

     

    • More than any other industry, 94% of M&E CEOs rank technological advances as one of the top three global trends that will have the most transformative effect on their businesses over the next 5 years

     

    • 68% of M&E CEOs rank demographic shifts as one of the top three global trends that will have the most transformative effect on their business over the next 5 years

     

    Customer growth and retention and technology investment is a priority…

    M&E CEOs have been busy transforming their businesses in response to global trends.

     

    With shifts in consumer spending and behaviours and the speed of technological change being key concerns for M&E CEOs, it is no surprise that nearly two thirds are making changes in the areas of customer growth and retention and technology investments.

     

    …but what about risk management?

    However, they are behind in some key areas such as risk management and strategy and organisational structure, with fewer change programmes either underway or completed than the total global response (38% compared to 53%).

     

    M&E CEOs also believe that risk management is the area of the business least prepared to make changes in response to global trends.

     

  • The wins have come across its seven divisions and nine offices in India

    Lowe Lintas registers 100 business wins in 15 months

    By a correspondent

     

    In a year that was relatively sluggish for the industry, Lowe Lintas and Partners announced today that they registered over 100 business wins in the past 15 months. These wins have come across its seven divisions and nine offices in India.

     

    Joseph George (Joe), Chief Executive Officer – Lowe Lintas and Partners said, “2013 was the culmination of an aggressive three-year new business plan that was put in place in early 2011; resulting in us, signing up upward of 300 new businesses in this period. Fantastic work leading to in-market success of our existing brands has played a disproportionate role in helping us earn the confidence of new clients. I have always believed that doing well on existing business is the best strategy to acquire new business.”

     

    Some of the clients acquired in this period include Hero Motocorp, myntra.com, STAR TV, OLX, Heinz, Bharat Matrimony, Onida, Expedia, bookmyshow, Milma, Coir Board, Bharat Benz, Max Bupa, Finolex, Gyproc, Apollo Hospitals, Wockhardt, Bharat Forge, MCX, Heinz, Rajasthan Tourism, Nutricia, Mahanagar Gas, Dr. Reddy’s Labs among many others…

     

    Lowe Lintas and Partners, IPG’s largest operation in India, partners about 250 clients. Some of whom, amongst India’s most successful and marketing savvy companies – Aditya Birla Group, Arvind Brands, Axis, Britannia, Croma, Dabur, DLF, Essar, Future Group, Godrej, Havell’s, Hindustan Unilever, ICICI, ITC, Johnson & Johnson, Maruti, Micromax, MRF, Nestle, Croma, Tata Tea, Tanishq, Times Group, Videocon to name a few.

     

     

  • Ije replaces Karl Heiselman following his recent departure from Wolff Olins to Apple

    Ije Nwokorie appointed new Design jury head at Cannes

    By a correspondent

     

    The Cannes Lions International Festival of Creativity has appointed Ije Nwokorie, the new Global CEO of Wolff Olins as the Design Lions jury president. Ije replaces Karl Heiselman following his recent departure from Wolff Olins to Apple.

     

    Born in America, Nwokorie spent his early years in Nigeria, an experience he credits with underpinning his creative outlook, as it is a world where commerce, culture and creativity are necessarily intertwined with everyday life. He completed his architecture training at Columbia University and has worked on urban regeneration projects in Africa, special effects in New York and computer gaming in London. Nwokorie joined the Wolff Olins team in 2006 as a senior strategist, was appointed managing director of Wolff Olins’ London office in 2010 and became global CEO in 2014.

     

    In his new position, Ije Nwokorie will lead Wolff Olins’ global business forward into an exciting new chapter; to inspire, as well as drive, facilitate and deliver strategy and innovation for big corporations. Wolff Olins is responsible for brands such as (RED), Orange, GE, Mercedes-Benz, New York City, London 2012, Tate, Unilever, Target, Hero MotoCorp, Tata Docomo and AOL.

     

  • Raj will be based in Mumbai and will work closely with Saurabh Varma

    Raj Deepak Das joins Leo Burnett as CCO

    By a correspondent

     

    Raj Deepak Das

    Leo Burnett India has announced the appointment of Raj Deepak Das as the chief creative officer (CCO). In his new role as CCO for the India operations across Mumbai, New Delhi, Bangalore and Chennai. Raj will be based in Mumbai and will work closely with Saurabh Varma.

     

    Mark Tutssel, chief creative officer, Leo Burnett Worldwide who was personally involved in the recruitment process that spanned several continents, said that Raj, with his proven track record behind world-class, award-winning work for global brands including P&G, Pepsi, Visa, Pizza Hut and Tesco among others is a new breed of creative, modern-day leader, a holistic thinker with sharp business acumen. “Raj brings with him an exuberant amount of global experience, creativity, focus and best-in-class leadership.  He understands today’s creative landscape is always-on and always integrated. The decision to bring Raj on board as our CCO holds immense promise for our clients and our creative product. I strongly believe that Raj, alongside Saurabh will form a perfect unity of creative and strategy, making the agency, one of India’s leading creative agencies today, the best integrated agency in the region going forward.”

     

    Saurabh Varma said, “Five months back we communicated our intention to be the best integrated communication company in India. With the appointment of Raj, we have made a decisive step in that direction. Raj and I will partner to create work that is not only human, but also partcipative by design. We will focus on work which brings out the purpose of our brands. Ultimately, the route to building the most popular brands is in creating work which creates believers not just consumers.”

     

  • Amazon lures online retailers from Indian rivals Flipkart and Snapdeal expanding range for same-day delivery

    It’s Amazon v/s Flipkart & Snapdeal

     

    By Radhika P Nair & Aditi Shrivastava

     

    Amazon India is casting a snare to draw more small merchants into its fold as it battles India’s top online retailers Flipkart and Snapdeal for supremacy in the country’s booming ecommerce industry. Beginning Wednesday, merchants can sell their wares on the same day they register on Amazon’s portal compared with the nearly two weeks it takes on competing platforms.

     

    The world’s largest online retailer is also expanding the range of products that will be delivered to customers within a day, displaying the trademark aggression that marks its global operations nearly 10 months after launching services in India.

     

    “A few thousand sellers have already registered for the new service,” said Amit Deshpande, a director and general manager at Amazon India who said the company already has a roster of 4,000 sellers.

     

    These moves, coming days after the company launched a high-voltage advertisement campaign including television spots during the current edition of the Indian Premier League, is aimed at getting the largest number of merchants and the widest variety of products for Amazon customers.

     

    “Amazon is moving from first gear to fourth,” said Arvind Singhal, chairman of retail advisory Technopak. “They have the basics in place.”

     

    Amazon is Trend-Setter

    Market leader Flipkart, which just reached the milestone of $1 billion (over Rs 6,000 crore) in sales, also has about 4,000 sellers on its marketplace. But it follows an invite-only model to sign on sellers which is more time-consuming.

     

    “Even though I am already a seller on Flipkart, if I need to add a new category it will take about two weeks to start selling,” said Eshan Arif, 24, co-founder of Bengaluru-based music and movie merchandise store Hysteria. For a first-time registration it takes about three weeks from signing up to a live listing. Flipkart declined to comment for the article.

     

    Industry estimates peg Amazon India’s sales at over $200 million (Rs 1,200 crore) although the company declined to share sales numbers. At current growth rates, Amazon is capable of clocking sales of $1 billion (Rs 6,000 crore) by the end of March 2016.

     

    This will make Amazon the first online retailer in India to reach the magic number within three years of launch. Flipkart, which reached the milestone in March this year, took seven years. Snapdeal, launched in 2010, expects to reach $1 billion in sales this year.

     

    Snapdeal did not respond to email queries. Merchants who do business with all the top Indian portals said Amazon has taken a lead in categories including books and watches and is set to duplicate it in jewellery and baby care.

     

    The company’s latest delivery service, ‘easy ship’, will allow sellers to ask for a product to be picked up and shipped by Amazon. It will also provide cash-on-delivery for these sellers’ orders, an option so far available only to those who stocked products with Amazon. The service, which has 400 sellers already registered, will be available in 30 cities to start with.

     

    “We now have a complete suite of services for sellers which will help them sell more and make more money,” said Mr Deshpande, who has been with the company since 2010.

     

    This is just the latest in a string of initiatives from the Seattle-based company that is stirring up the Indian online retail industry estimated at $3 billion (over 18,200 crore).

     

    Last December, Amazon launched in-a-day delivery service forcing Flipkart and Snapdeal to follow suit. Flipkart and Amazon also launched their Apple iPhone and iPad applications within a day of each other. “Amazon is forcing Flipkart to push ahead with its customer and seller services,” said Ashish Jhalani, head of advisory services firm eTailing India. In Delhi and Mumbai, Amazon.in is piloting pick-up services where customers can pick up their orders from In & Out stores located at BPCL petrol stations.

     

    “Amazon is pretty much the trendsetter,” said Mahesh Murthy, founding partner at early stage venture fund Seedfund. “When Amazon started charging for delivery, Flipkart did the same.” Industry experts said Amazon India has done right by first focusing on backend processes instead of blindly chasing customers upon entry. “They built the logistics network, warehouses and built up a large selection of products that is helping them win customers now,” said Technopak’s Singhal.

     

    The company now has about 1.5 crore products listed on its site and two warehouses, each measuring over 150,000 square feet, in Mumbai and Bengaluru.

     

    Earlier this month, Flipkart said it had millions of products across 21 categories and 40 sub-categories. At peak times, the Bangalore-based company ships 1.3 lakh products a day.

     

    Amazon said its strong backend infrastructure is helping it scale up fast. “When we decide on areas of focus, we always work backwards from the customer,” said Mr Deshpande of Amazon.in. “Selection, delivery experience, logistics, payments and website experience are areas we are super-focused on.”

     

    Customers are taking note. “I used to buy books from Flipkart, but now I buy from Amazon.in as I see better variety there and it is the same price if not cheaper than Flipkart,” said Shradha Patnaik, 24, a communications professional who lives in Delhi.

     

    Merchants too are happy with their experience on the site. “Margin cut at Amazon is about 6-7%, compared with 10-12% at Flipkart,” said Hysteria’s Arif.

     

    While these indicate that Amazon is chipping away at the fortress that Flipkart has built, overtaking the market leader will take some doing.

     

    While prices in categories such as books are similar or Amazon.in is cheaper, in areas such as mobiles and tablets, Flipkart is cheaper in most models and brands. Flipkart is able to do this as WS Retail, a seller on Flipkart, is its subsidiary and gets most of its inventory directly from brands.

     

    “Flipkart’s WS Retail also buys outright from us and accounts for about 80% of our volume on Flipkart,” said Vivek Prabhakar, co-founder of design merchandise firm Chumbak, for whom online sites account for 18% of overall sales.

     

    Experts too believe that Flipkart has been able to fight back, for now. “Flipkart has the people and has built processes and technology. They are fighting back powerfully,” said eTailing’s Jhalani.

     

    Many believe the battle will only truly begin when Amazon.in launches apparel. Flipkart is believed to be in talks to acquire rival fashion portal Myntra to shore up its defences.

     

    Amazon, which launched other fashion categories lately, the most recent being shoes, is expected to launch apparel in the first two weeks of May.

     

    Source:The Economic Times

    Copyright © 2014, Bennett, Coleman & Co. Ltd. All Rights Reserved

    Licensed to republish

     

  • There will be no edition of MxMIndia with a fresh update as it's Voting Day in Mumbai

    No edition/update tomorrow as it’s Voting Day in Mumbai

    ​Since it’s Voting Day in Mumbai ​tomorrow (Thursday, April 24), our editorial and business offices are shut.

     

    So there will be no major update or newsletter. However, we do realise that major A&M centres like New Delhi NCR, Bengaluru and Pune are working, so our apologies for not being around. But we assure you that our antennae will be up and we will swing into action if and when there’s something striking.

     

    If you are in Mumbai, Chennai and all those constituencies which are voting, please do go out and vote. We know that the sun is out there in full force after 8-8.30pm, but rest assured you’ll see sunny days for the next five years if you cast your vote.