09 February 2012

FlipKart Buyout LetsBuy … What Next

The first of its kind, the biggest news in Indian E commerce space and every one enormously chewinging around it.  Indian eCommerce giant Flipkart buys out competitor LetsBuy  … Hushha. Where does Indian E commerce Industry headed now onward, what are the consequences and outcome of this deal. How upcoming eCommerce brands develop their core competencies and how do we mushrooming energetic & visionary entrepreneur in near future if eCommerce business life cycle happen to be very short. How Indian eCommerce business model response to SLEPT factor?
Let’s have a look on some facts file.  LetsBuy is the second largest player in the country and is the strongest competitor to Flipkart. From a comscore standpoint, it has 2 million unique and over 5 million visitors every month, and is among the top 4 commerce sites in the country.  If the Giant A & Giant B merge with one brand then how the remaining small fish survive and position them self in near future. 

How this proposed buyout impact on operating economies of Indian eCommerce sector in near future is very interesting to watch. This is the biggest scope for niche online eCommerce brands like FirstCry, Bestylish to position them self and earn online consumer loyalty. It’s very interesting to see, how such niche brands handle establish competitions in near future.

Hereon if Flipkart manage to establish ecommerce brand like Amazon or EBay that would be great for overall Indian online marketing industry.  This buyout synergy may also arise from enhanced managerial capabilities, creativity, innovativeness, R&D and market coverage capacity due to the complementarity of resources and skills and a widened horizon of opportunities for Flipkart. 

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