After reports showed that Reliance is looking to enter its hybrid online-offline model to foray into e-commerce, Flipkart is also looking to follow the same strategy to expand its business.
Also Read: Reliance Retail To Enter B2B E-commerce Space With Kirana Stores
According to an ET report, the Walmart owned E-commerce company is planning to sell smartphones through 15000 convenience stores, beauty salons, bakeries and pharmacies.
Right now Flipkart is testing this model in Telangana where it has partnered with 800 stores to sell smartphones. Under this scheme, Flipkart is delivering the phones to the stores from where the orders were placed. The kirana stores then deliver the products to the customers earning a margin.
According to the same sources, this project is generating a revenue of Rs 15-20 Crore per month. After these results, Flipkart is now looking to replicate the model across the country.
Also Read: Why Co-Existence In Offline And Online Market Is The Best Strategy For Future
Currently, the same model model is followed by fashion portal Myntra. Myntra uses a network of kirana stores and other small shops to do its last-mile deliveries. The programme is called ‘Mensa Network’. This network includes brick-and-mortar stores which are used for providing delivery services in 50 cities.
Hybrid model is surely the future of e-commerce in India, the interesting part is how companies will keep it profitable keeping the discount loving mindset of customers.
